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. If the CCC loan rate is increased, the
A. Surplus in the market will become larger.
B. Shortage in the market will become larger.
C. Surplus in the market will become smaller.
D. Shortage in the market will become smaller.
Answer: A
You might also like to view...
Why is the tax multiplier smaller (in absolute value) than the autonomous spending multiplier?
What will be an ideal response?
When a new product is introduced in the market, Lenny always wants to see how popular the item becomes before he purchases it. Lenny's behavior is known as
A) overt collusion. B) limit-pricing. C) a network effect. D) price leadership.
Which of the following taxes is clearly regressive?
a. an income tax b. a unit tax on gasoline c. a corporate tax d. a 25 percent tax on all income e. a 10 percent tax on all income
A Market:
A. Exhibits up sloping demand and down sloping supply curves B. Entails the exchange of goods but not services C. Is and institution of mechanism that brings together buyers and sellers D. Always requires face-to-face contact between buyer and seller