Question 5: [Agricultural Market Interventions and Reforms] Consider a country that exports corn, and assume that: a. De

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Question 5: [Agricultural Market Interventions andReforms]
Consider a country that exports corn, and assume that:
a. Describe the likely effects of anincrease in the price of corn on the well-being of each of thefollowing groups, being careful to describe all relevant channelsthrough which the price increase might affect the group’swell-being, and the likely direction of the effect.
b. The table below shows somestatistics describing the corn-exporting country’s population. Ifthis country reduced its import tariff on corn, would you expectthe number of the poor who benefit from the change to be greater orsmaller than the number of the poor who are hurt by thechange? Explain. Please assume that this country is asmall importer in world corn markets.
Among All Households:
Percent Urban
Percent Rural
20
80
Among All Urban Households:
Percent Poor
Percent Non-poor
20
80
Among All Rural Households:
Percent Poor
Percent Non-Poor
60
40
Among Poor Rural Households:
Percent Small Commercial Corn Farmers
Percent Non-Farm Self Employed
Percent Wage Laborers
70
15
15