When a market is distorted – as is argued in this article – what can governments do to protect the producers
Week 9 & 10 Discussion
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Please read the article and then write a post answering the questions below:
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Read Hare-grained (http://www.economist.com/news/leaders/21678224-subsidies-and-other-protections-rice-farmers-harm-some-worlds-poorest). When a market is distorted – as is argued in this article – what can governments do to protect the producers/consumers while also attempting to mitigate or correct the distortion?
There is no right or wrong answer, but thoughtful responses are requested. Can changes ever be made without decreasing the utility of either the consumer/producer?
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Source: Dennis W. Carlton and Jeffrey M. Perloff (2005): Modern Industrial Organization, 4th
Edition. Addison-Wesley.
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