Developing world countries might provide food at artificially low prices in order to make food affordable in cities.What is a consequence of this?
A) It robs farmers of the incentive to farm.
B) more activity at seaports
C) a positive balance of trade for the developing world country
D) riots when markets are open
E) urban to rural migration

Question

Quizplus · Accepted Answer

By providing food at artificially low prices, farmers are not able to earn a fair price for their crops. This can lead to a lack of incentive to farm, as they are unable to make a sufficient profit. Eventually, this can lead to a decrease in the overall supply of food, causing prices to rise even more and leading to a cycle of scarcity and poverty.

Developing World Countries Might Provide Food at Artificially Low Prices