In a Move to Free the Economy from Unnecessary Regulation

question 83

Multiple Choice

In a move to free the economy from unnecessary regulation, Congress decides to remove sugar price supports.What would most likely happen to the number of producers of sugar?

• A)It would decrease, because sugar prices would fall.
• B)It would decrease, because sugar prices would rise.
• C)It would increase, because sugar prices would fall.
• D)It would increase, because sugar prices would rise.

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Definitions:

Horizontal Exchanges

refer to marketplaces or platforms that facilitate the trading, sharing, or selling of goods, services, or information between entities within the same industry or sector.

Many Industries

This refers to the broad range of sectors and fields within the economy, encompassing various types of businesses and production methods.

Vertical Exchanges

Online marketplaces connecting buyers and sellers within specific industries or sectors, facilitating more specialized transactions than traditional horizontal marketplaces.

Given Industry

Refers to a specific sector or market within the economy that is identified by its particular products, services, or business activities.