To Keep the Price at the Level Set by a Price

question 144

Multiple Choice

To keep the price at the level set by a price support,the government must

• A) buy some of the good.
• B) sell some of the good.
• C) receive a subsidy from the producers.
• D) insure that imports are readily available.
• E) be careful to always set the price support below the equilibrium price.

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Definitions:

Compressed

The state of being pressed into less space or condensed under pressure.

New Pressure

A term referring to the stress or urgency of a situation, or in a scientific context, the change in the force exerted by a fluid per unit area.

Expanded

Increased in volume or size, often by the introduction of air or in response to heat.

New Pressure

An unspecified or novel force applied uniformly over a surface, measured typically in units such as pascals.