Exhibit 4-11 Data on Supply and Demand Which of the Following Would Occur If the Government Imposed

question 23

Multiple Choice

Exhibit 4-11 Data on supply and demand $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Bushels demanded } \\\text { per month }\end{array} & \begin{array} { c } \text { Price per } \\\text { bushel }\end{array} & \begin{array} { c } \text { Bushels supplied } \\\text { per month }\end{array} \\\hline 45 & \$ 5 & 77 \\50 & 4 & 73 \\56 & 3 & 68 \\61 & 2 & 61 \\67 & 1 & 57 \\\hline\end{array}$$ Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?

• A) Buyers would want to purchase more wheat than is supplied.
• B) Buyers would not purchase all of the wheat grown.
• C) Shortage of wheat would increase the price of wheat.
• D) Farmers would grow less wheat.

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Definitions:

Cognitive Dissonance

The discomfort in one's mind occurring when they simultaneously hold multiple opposing beliefs, ideas, or values.

Deliberate Attempt

A planned and intentional action aimed at achieving a specific outcome.

Expertise

An extensive amount of background knowledge that is relevant to a reconstructive memory task.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or behaviors through communication.