Use the Following to Answer Questions

question 85

Multiple Choice

Use the following to answer questions .
Exhibit: Supply and Demand in Agriculture
-(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

• A) Q₃ bushels of wheat would be supplied.
• B) with this much wheat on the market, the price would fall to P₁.
• C) the resulting shortage would be made up by the government out of its accumulated stocks.
• D) all of the above would be true.