Which of the Following Is the Most Likely Explanation for the Imposition

question 79

Multiple Choice

Which of the following is the most likely explanation for the imposition of a price floor in the market for corn?

• A) Policymakers have studied the effects of the price floor carefully and they recognize that the price floor will improve the efficiency of resource use.
• B) Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into enacting the price floor.
• C) Buyers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor.
• D) Sellers of corn, recognizing that the price floor is good for them, have pressured policy makers into enacting the price floor.