Agriculture price supports that establish a price floor at which agricultural products may be purchased that exceeds the market clearing price
A. result in the quantity of these products supplied exceeding the quantity demanded at the floor price.
B. benefit taxpayers, who receive subsidies from producers that the price support program forces to sell to the government at an artificially established price.
C. benefit consumers, who are willing and able to purchase more agricultural products at the floor price.
D. create a shortage of agricultural products.
Answer: A
You might also like to view...
Suppose the price elasticity of demand for good A is 1.25 . If the price of good A increases by 20%, what will be the resulting percentage change in quantity demanded for good A?
Figure 10.1 depicts a firm's marginal revenue product curve. If the firm maximizes its profit and the hourly wage is $15, how many hours of labor will the firm demand?
A. smaller than 30 hours B. between 30 hours and 40 hours C. between 40 hours and 50 hours D. greater than 50 hours
National income is derived from gross domestic product by
A) subtracting retained earnings from gross domestic product. B) adding personal taxes and depreciation to gross domestic product. C) subtracting depreciation from gross domestic product. D) adding personal income and transfer payments to gross domestic product.
Suppose a market is in equilibrium. If a price floor is set in this market below the equilibrium price, it is likely that:
A) quantity demanded will increase. B) a surplus will arise. C) a shortage will arise. D) the quantity sold will rise. E) the market will remain in equilibrium.