Recall the Application About the Policies Used by the European

question 43

Multiple Choice

Recall the Application about the policies used by the European Union to support the agricultural sectors of is member countries to answer the following question(s) .
-According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. Excess supply can be generated if a government establishes a

• A) price ceiling below the market equilibrium price.
• B) price ceiling above the market equilibrium price.
• C) price floor below the market equilibrium price.
• D) price floor above the market equilibrium price.