Subsidies to farmers can be likened to a price floor in the market: A. Allocative efficiency: B. Consumer surplus :: C. Producer surplus: ?

Subsidies to farmers can be compared to a price floor because they help keep the prices of agricultural products above a certain level, ensuring farmers receive a fair income. This support increases producer surplus, which is the extra benefit producers get when they sell their goods at a higher price than they would without the subsidy. In this case, just as a price floor helps producers, it may reduce consumer surplus because consumers might have to pay higher prices for these goods. For example, if a government gives farmers a subsidy for corn, the price of corn may rise, benefiting the farmers but making it more expensive for consumers who want to buy corn. Overall, subsidies create a similar effect to price floors by supporting producers while potentially limiting benefits for consumers.