Sunday, November 29, 2009

Supply is GREATER than Demand---Should we SUBSIDIZE Apple Growers???

Becaue of a bumper crop of apples (for story click HERE), the price that apples growers are getting in the market are at their lowest levels in a long time.  In fact it is a money losing propostion to even pick the apples off the tree (lots of wasted apples).  What is the opportunity cost of picking the apples? Of NOT picking the apples?  Because this may cause some growers to go out of busines, should the Federal Govt offer subsidies to the farmers so they can stay in business and assure a future supply of apples? (Link courtesy of Mankiw)


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