Intervention in agricultural.ppt

文档介绍：Intervention in agricultural
markets
Justification for intervention
Intervention in agricultural markets
P
Q
O
P1
D
Sa1
Inelastic demand for food
P
Q
O
P1
P2
D
Sa1
Sa2
Inelastic demand for food
Quantity of foodstuff
O
Y1
D
Q t
e
Inelastic demand with respect to e
Quantity of foodstuff
O
Yt
D
Q t
e
Y t+1
Q t+1
Inelastic demand with respect to e
Quantity of foodstuff
O
Y1
D
Q t
e
Negative demand elasticity with respect to e(inferior good)
Negative demand elasticity with respect to e(inferior good)
Quantity of foodstuff
O
Y1
D
Q t
e
Y t+1
Q t+1
e elasticities of demand for various foodstuffs
P
Q
O
P1
D1
S1
Q1
Decline in food prices over time