The impact of price support system on common agricultural policy of the european union.

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The impact of price support system on common agricultural policy of the european union.

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ISBN: 3409122893 ISBN: 3409122893 ISBN: 3409122893 ISBN: 3409122893

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· Subsidies reduce the welfare of the consumer if there is an over-production, · It is difficult to estimate which producer get subvention, and once it is given it is difficult to remove, (protective tariffs may have the same effect) · Reduce consumer surplus or cost, · Increase product price, · Subsidies cause a producer and consumer cost or deadweight, · Reduce competition of third country producers, Subsidy is used for political purposes, such as work place guarantee




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