-Refer to the Diagram Above

question 8

Multiple Choice

-Refer to the diagram above.Assume that a price floor is imposed at point V,i.e. ,the price is now represented by the distance 0V,and that the government vows to purchase any excess supply.The triangle WRP measures the

• A) increased producer surplus due to the price floor.
• B) loss of total economic surplus due to the price floor.
• C) reduced consumer surplus due to the price floor.
• D) increased total economic surplus due to the price floor.
• E) increased consumer surplus due to the price floor.

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Definitions:

Crop Losses

Reduction in the expected yield of agricultural products due to factors like pests, diseases, and extreme weather.

Pesticides

Chemicals used to kill pests, including insects, rodents, fungi, and unwanted plants (weeds), widely applied in agriculture to protect crops.

Cultivation Practices

The methods and techniques used in farming and agriculture to grow crops and raise livestock.

Inhospitable

Describes an environment that is extremely difficult for living organisms to survive in due to harsh conditions.