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Society would clearly be better off in efficiency terms if the government simply gave the farmers A+B+D,leaving price and output alone.Farmers would then gain A B+D and the government would lose A+B+D,the change in total welfare is zero. But economic efficiency is not always the objective of government policy.Society would clearly be better off in efficiency terms if the government simply gave the farmers A + B + D, leaving price and output alone. Farmers would then gain A + B + D and the government would lose A + B + D,the change in total welfare is zero. But economic efficiency is not always the objective of government policy
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