In a Crop Market with a Price Support Above the Equilibrium

question 92

Multiple Choice

In a crop market with a price support above the equilibrium price,the total amount of the subsidy paid to farmers is equal to the

• A) quantity of the surplus crop multiplied by the support price.
• B) quantity of the crop produced multiplied by the support price.
• C) quantity of the crop purchased by domestic users multiplied by the support price.
• D) quantity of the surplus crop multiplied by the equilibrium price.
• E) quantity of the crop purchased by domestic users multiplied by the equilibrium price.

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Definitions:

Upward-Sloping Supply Curve

A graphical representation showing that as the price of a good increases, producers are willing and able to supply more of it.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from the production and consumption of goods and services.

Market for Hamburgers

This refers to the economic market in which buyers and sellers engage in the trade of hamburgers, influenced by factors such as price, demand, and competition.

Scientific Management

One of the earliest approaches to management, was concerned with structuring individual jobs to maximize efficiency and productivity.