The largest U.S. welfare program is

Suppose the market-clearing price of wheat is $2.50 per bushel. What would happen if wheat farmers persuaded the government to set a legally-mandated price support of $3.75 per bushel?

A) The quantity demanded of wheat would fall. B) The quantity supplied of wheat would rise. C) A surplus of wheat would occur. D) All of the above.

When a firm's fixed cost rises, its total profit curve shifts

a. up at every output level. b. down at every output level. c. left at every profit level. d. right at every profit level.