Refer to Figure 29.3 for a cotton market with an equilibrium price of P1 and a Commodity Credit Corporation (CCC) loan rate set above P1. Given this situation, cotton farmers are most likely to
A. Sell their cotton on the market and repay only a portion of the CCC loan.
B. Leave the cotton farming business.
C. Sell their cotton on the market and repay the CCC loan with the proceeds plus other funds to make up the difference.
D. Give their cotton to the CCC and not repay the loan.
Answer: D
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