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:

Fire Alarm

A device designed to detect fire or smoke and emit a loud warning sound to alert occupants of potential danger.

Cold Temperature

Refers to lower temperatures that can be naturally occurring or artificially created, often perceived as uncomfortable or requiring physiological adaptation by organisms.

Sensory Adaptation

The process by which sensory receptors become less sensitive over time when exposed to constant stimuli.

Unchanging Stimulus

A stimulus that remains constant over time without variation, which can sometimes lead to habituation, where the response to the stimulus decreases.