Price supports can help farmers to better compete internationally

Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, consumer surplus is:

A. $32.
B. $11.
C. $7.
D. equal to the producer surplus.

The shortsightedness effect suggests that

A) politicians have a strong incentive to support projects that yield benefits in the distant future, especially when the costs of the project must be paid for in the current period. B) politicians have a strong incentive to support projects that yield immediate and easily recognized benefits, especially when the costs of the projects are difficult to identify and are observable only in the distant future. C) legislators will be unwilling to trade votes on issues, especially when those issues benefit only special interest groups. D) voters will tend to weigh future costs and benefits more heavily than current costs and benefits.