Reference no: EM133132375

A second approach is for the government to pay fruit and vegetable farmers part of the cost of producing fresh fruit and vegetables. For example, the government could pay part of the cost of pesticides or seeds or harvesting equipment that fruit and vegetable farmers use. When the government pays part of the cost of producing something, such as fresh fruit and vegetables, that's called a "subsidy." Would this plan succeed in make fresh fruits and vegetables more affordable? Explain the impact of subsidies to farmers on the equilibrium price and equilibrium quantity of fresh fruit and vegetables. Your explanation will be in terms ofshifts in demand or supply (or both, or neither) and the effects ofany shift. Describe the process by which the shift moves us to a new equilibrium price and quantity of fresh fruit and vegetables.