What is the result of an agricultural support price established above the equilibrium price?

A) The market gravitates toward and remains in equilibrium.
B) There will be excess quantity supplied of the product involved.
C) There will be excess quantity demanded the product in this market.
D) Since the support price is set above the equilibrium price, it will have no impact on the market price.

B

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For a given market demand curve, if the market clearing price decreases, then the amount of consumer surplus will

A) decrease. B) increase. C) become negative. D) none of the above due to insufficient information.

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Adopt incentive compensation

a. Under all circumstances since it is the best solution b. Only if it is effective in making the agent work harder c. Only if its results exceed its costs d. Only B&C

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