5 ms·
Why is there an incentive to grow more mustard? Subsidies have shifted the supply curve for mustard. The opportunity costs of growing mustard have increased due
by atwood22 4y ago
Why is there an incentive to grow more mustard? Subsidies have shifted the supply curve for mustard. The opportunity costs of growing mustard have increased due to subsidies for other crops. Now less mustard is grown and a new equilibrium price is set. The old amount of mustard will never be grown due to the shift in the supply curve from subsidies of other crops.
- deleted 4y ago[deleted]
- Dylan16807 4y agoThe "more" was relative to 90 tonnes. You're correct that the new equilibrium would be below 100.