Explain in terms of elasticity of demand for farm product

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In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm products why farmers may be better-o¤ when harvests are low even if we ignore the money they receive from the set-aside program.

Reference no: EM13207575

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