A Market Price Support Policy Establishes a Price Floor, Which

question 63

Multiple Choice

A market price support policy establishes a price floor, which:

• A)decreases the price paid by consumers.
• B)does not change the price paid by consumers.
• C)increases the price received by farmers.
• D)decreases the price received by farmers.

---

Definitions:

Premium Price

The higher price charged for a product or service that is perceived to have greater value compared to alternatives.

Agency Relationship

A legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.

Genetically Modified Seed

A seed that has been altered using genetic engineering techniques to possess certain traits such as pest resistance or increased nutrient value.

Purchasing Agent

An individual or company responsible for buying goods and services for another entity.