When a Market Has a Price Support Set Above the Equilibrium

question 70

Multiple Choice

When a market has a price support set above the equilibrium price,

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

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Definitions:

Terraces

Flat, step-like surfaces on a sloped piece of land, created either by natural processes like river erosion and glacial activity or by human agricultural practices.

Active Channel

The portion of a river or stream that is currently used for the flow of water, often subject to frequent changes in course and volume.

Thunderstorms

Violent weather phenomena characterized by the presence of lightning and thunder, often accompanied by heavy rainfall.

Snowmelt

The process of snow changing into water due to rising temperatures, an important source of fresh water in many regions and a factor in flood generation.