Use the following to answer question 70:
-Suppose that Canadian sheep farmers are very upset about the subsidies the UK government pays to British sheep farmers.One reason for this could be that subsidized wool from the United Kingdom:
A) leads to wool surpluses in the United Kingdom and lower prices for Canadian farmers on world markets.
B) raises the world price of wool.
C) has led to a global shortage of wool.
D) has led to an increase in the demand for Canadian wool.

Question

Use the following to answer question 70: 
-Suppose that Canadian sheep farmers are very upset about the subsidies the UK government pays to British sheep farmers.One reason for this could be that subsidized wool from the United Kingdom:
A) leads to wool surpluses in the United Kingdom and lower prices for Canadian farmers on world markets. 
B) raises the world price of wool. 
C) has led to a global shortage of wool. 
D) has led to an increase in the demand for Canadian wool.

Quizplus · Accepted Answer

Subsidized wool from the United Kingdom would lead to wool surpluses in the United Kingdom, causing a decrease in prices. As a result, Canadian farmers would face lower prices for their wool on world markets.

Use the Following to Answer Question 70