11. a) Briefly explain the basic purpose and functioning of the price floor, one of the methods of direct govemment support, by drawing a graph.(10 points). b) Explain, by drawing a graph, the basic purpose and functioning of the premium system (financial aid system), which is another important type of direct support for agricultural producers. (10 points). c) Briefly explain the basic and most important difference between price floor and premium system.

11. a) Briefly explain the basic purpose and functioning of the price floor, one of the methods of direct govemment support, by drawing a graph.(10 points). b) Explain, by drawing a graph, the basic purpose and functioning of the premium system (financial aid system), which is another important type of direct support for agricultural producers. (10 points). c) Briefly explain the basic and most important difference between price floor and premium system.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 8DQ

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