If government sets price supports on agricultural goods that are above equilibrium prices, what must the government do to maintain those prices?

It ultimately would have to purchase some of the good. Why? Because consumers would buy less at the
higher price, and farmers would supply more, creating an excess supply. Who will take that excess supply
off the market? The government must—otherwise the forces of excess supply will drive price back to
equilibrium.

Economics

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An increase in the price level shifts the planned expenditures curve upward

Indicate whether the statement is true or false

Economics

If the percentage change in quantity demanded is greater than the percentage change in price, we would say that over this range, demand is:

A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic.

Economics