Farm support programs most often take the form of price floors, which cause excess demand.
Answer the following statement true (T) or false (F)
False
Price supports have always been the primary focus of U.S. farm policy. As early as 1926, Congress decreed that farm products should sell at a fair price. By 'fair' Congress meant a price higher than the market equilibrium. A price floor creates a market surplus or excess supply.
You might also like to view...
Aggregate demand will be affected by the purchasing power of money
Indicate whether the statement is true or false
How is the incidence of a sales tax between the buyer and the seller determined?
What will be an ideal response?
Fiscal policy is the manipulation of government spending and taxes
a. True b. False Indicate whether the statement is true or false
In which one of the following market models is X-inefficiency most likely to be the greatest?
A. Pure competition. B. Oligopoly. C. Monopolistic competition. D. Pure monopoly.