A Market with a Price Support Set Above the Equilibrium

question 130

Multiple Choice

A market with a price support set above the equilibrium price,

• A) consumers gain.
• B) taxes on consumers decrease.
• C) marginal benefit exceeds marginal cost.
• D) is efficient.
• E) farmers gain.

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Definitions:

Production

The process of creating goods or services by combining various inputs like labor, capital, and natural resources.

Government Subsides

Financial assistance provided by the government to individuals, organizations, or businesses in order to promote certain activities or reduce the costs of those activities.

Economic Growth

An increase in the production of goods and services in an economy over a period, typically measured as the percent change in GDP.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.