Suppose a country produces two goods, oats and barley, which have similar production processes. Suppose the government places a high price support on barley. After the implementation of the barley price support program, health officials release the news that the consumption of oats may lower cholesterol levels. Given the present policy and the new health information, what is the likely effect in terms of the availability of oats? What is likely to happen to this nation's imports of these two grains?

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The Answer of Suppose a country produces two goods, oats and barley, which have similar production processes. Suppose the government places a high price support on barley. After the implementation of the barley price support program, health officials release the news that the consumption of oats may lower cholesterol levels. Given the present policy and the new health information, what is the likely effect in terms of the availability of oats? What is likely to happen to this nation's imports of these two grains?

Suppose a Country Produces Two Goods, Oats and Barley, Which