If an agricultural price support keeps a price above the equilibrium market price,
A. There will be redistribution of income from the government to consumers.
B. More resources will be devoted to agriculture than are optimal.
C. There will be positive market feedback leading to even higher prices.
D. Shortages of agricultural products will result.
Answer: B
Economics
You might also like to view...
Refer to Figure 7-3. With a quota in place, what is the quantity supplied by domestic producers?
A) 16 million pounds B) 18 million pounds C) 28 million pounds D) 34 million pounds
Economics
The efficient transfer price is
a. the upstream division's average cost b. the upstream division's marginal cost c. the downstream division's average cost d. the downstream division's marginal cost
Economics