Who gains and who loses as a result of these subsidies

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Reference no: EM13854162

The increased demand for corn to be used in ethanol is driven in large part by nearly $10 billion in government subsidies.

Consider three groups of people:

- Consumers (who are also taxpayers)

- Commodity farmers (who can plant either corn or wheat)

- Cattle ranchers (who buy corn or wheat to feed to livestock)

Of these groups, who gains and who loses as a result of these subsidies?

A. Farmers gain; consumers and ranchers lose.

B. None of these groups gains anything; the only ones to benefit are the ethanol-producing companies.

C. Farmers and consumers gain; ranchers lose.

D. Farmers and ranchers gain; consumers lose

Reference no: EM13854162

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