If the market price for a crop is $4.00 a bushel, and the price support is $3.00, then raising the price support to $5.00
A. will cause the price received by farmers to rise to $5.00.
B. will cause the price received by farmers to rise to $4.00.
C. will cause nothing to happen.
D. will cause the price received by farmers to fall.
Answer: A
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An increase in the demand for peanuts due to changes in consumer tastes, accompanied by an increase in the supply of peanuts as a result of favorable growing conditions, will result in
A) an increase in the equilibrium price of peanuts and no change in the equilibrium quantity. B) an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease. C) an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease. D) an increase in the equilibrium quantity of peanuts and no change in the equilibrium price.
A demand relationship in which a given percentage change in price will result in a less than proportionate percentage change in quantity demanded is
A) elastic. B) unit-elastic. C) inelastic. D) consistent with zero elasticity.