If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50, then
A. a shortage will be created causing the price to rise to the equilibrium price of $4.50.
B. a permanent shortage will develop because the government established the minimum price at $5.00.
C. a surplus will be created causing the price to fall to the equilibrium price of $4.50.
D. a permanent surplus will develop because the government established the minimum price at $5.00.
Answer: D
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