Minimum price where some of the product is

Minimum price where some of the product is imported EU supply P Pw EU demand O QS 1 Imports Qd 1 Q

Minimum price where some of the product is imported EU supply Import levy P Pt Pw EU demand O QS 1 Qd 1 Q

Minimum price where some of the product is imported EU supply Import levy P Pt Pw EU demand O QS 1 Qd 2 QS 2 Imports Qd 1 Q

Minimum price where some of the product is imported EU supply Import levy P Pt Pw Extra amount paid By consumers EU demand O QS 1 Qd 2 QS 2 Imports Qd 1 Q

Minimum price where some of the product is imported EU supply Import levy P Pt Pw Extra amount paid to farmers AMOUNT PAID IN IMPORT LEVIES to Govt EU demand O QS 1 Qd 2 QS 2 Imports Qd 1 Q

But over time effect of subsidies and price floor’s means supply rises – so need to look P at Minimum prices for a product where the country is self-sufficient SEU Pw a b DEU O Qd 1 Exports QS 1 Q

Minimum prices for a product where the country is self-sufficient P SEU Pi Pw a b DEU O Qd 1 QS 1 Q

Minimum prices for a product where the country is self-sufficient P Pi e d a Pw SEU b DEU O Qd 2 Qd 1 QS 1 Surplus QS 2 Q

Minimum prices for a product where the country is self-sufficient P e Pi Pw a f SEU d b c Amount bought into intervention DEU O Qd 2 Qd 1 QS 1 Surplus QS 2 Q

Minimum prices for a product where the country is self-sufficient P e Pi Pw f SEU d a b c COST OF BUYING THE SURPLUS DEU O Qd 2 Qd 1 QS 1 Surplus QS 2 Q

Minimum prices for a product where the country is self-sufficient P e Pi Pw f SEU d a NET COST b c REVENUE FROM SALE OF SURPLUS ON WORLD MARKET DEU O Qd 2 Qd 1 QS 1 Surplus QS 2 Q