The above figure shows supply and demand curves for milk. In an effort to help farms, the government passes a law that establishes a $3 per gallon price support, but allows farmers to decide how much milk to produce
The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon. The required deficiency payment equals A) b + c + f + g + h + i + j.
B) b + c + f + g + h + i.
C) f + g.
D) b + c.
A
Economics
You might also like to view...
The difference between actual and natural unemployment rates is called ________ unemployment
A) turnover B) mismatch C) cyclical D) measured
Economics
For voluntary action to correct an externality
A) transaction costs have to be high. B) transaction costs have to be low. C) transaction costs have to be split evenly between all of the parties involved. D) transaction costs are irrelevant.
Economics