What Is the Result of an Agricultural Support Price Established

question 119

Multiple Choice

What is the result of an agricultural support price established above the equilibrium price?

• A) The market gravitates toward and remains in equilibrium.
• B) There will be excess quantity supplied of the product involved.
• C) There will be excess quantity demanded the product in this market.
• D) Since the support price is set above the equilibrium price, it will have no impact on the market price.

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Definitions:

Training Opportunities

Programs or initiatives designed to enhance the skills and knowledge of individuals, typically offered by employers or educational institutions.

Mutual Adjustment

A process of coordination between parties or groups that is based on informal communication and spontaneous problem-solving.

Divisions of Labour

The allocation or distribution of tasks among workers, systems, or organizations, specialized to increase efficiency and productivity.

Routine Tasks

Tasks that are performed in a predictable and standardized manner, often with repetition.