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    Change in demand curve

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    How would the demand curve for a farmer shift if the government offered all wheat farmers a subsidy of $1.50 per bushel and what would the curve look like if the government imposed a tax on wheat requiring farmers to remit $1.00 for every bushel they sell?

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    We are really talking about changes to the supply curve when we are discussing government incentives and disincentives to wheat suppliers (farmers). As far as we can tell, there is no change to the consumer's demand. Of course, perhaps the government is the sole consumer, in ...

    Solution Summary

    Change in demand curve is assessed.