In a crop market with a price support above the equilibrium price, the total amount of the subsidy paid to farmers is equal to the

A) quantity of the surplus crop multiplied by the support price.
B) quantity of the crop produced multiplied by the support price.
C) quantity of the crop purchased by domestic users multiplied by the support price.
D) quantity of the surplus crop multiplied by the equilibrium price.
E) quantity of the crop purchased by domestic users multiplied by the equilibrium price.


A

Economics

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When there is a surplus of a product in a market the:

a. price will rise. b. price must be above the equilibrium price. c. producers will expand output and sales will rise. d. price must be below the equilibrium price.

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This graph reflects a Keynesian viewpoint. How would the economy respond to an aggregate demand increase under the classical model?



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Economics

If ________, the short-run AS curve shifts upward over time.

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Economics