What effect might a government subsidy on local farming have on the price and quantity of locally grown produce?

A government subsidy on local farming would reduce the cost of production for farmers, encouraging them to produce more. This would shift the supply curve to the right, resulting in an increase in the quantity supplied and a decrease in the price of locally grown produce. This could make local produce more attractive to consumers, boost local agriculture, and have broader economic implications.

Answered by: David YEconomics Tutor
5.9Kviews
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