What role should the government play with respect to the agricultural sector in developing countries in their attempt to alleviate poverty?

In the above figure, if a subsidy is granted to producers that generates an efficient allocation of resources, then producers will receive a total amount (price plus subsidy) equal to

A) $20 per unit. B) $15 per unit. C) $10 per unit. D) $5 per unit.

If the government imposes a maximum price that is above the equilibrium price,

A. demand will be greater than supply. B. quantity demanded will be less than quantity supplied. C. this maximum price will have no economic impact. D. the available supply will have to be rationed with a nonprice rationing mechanism.