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:

Compassion

The emotional response to perceiving suffering and involves an authentic desire to help alleviate that suffering.

Instrumental Value

The value of something not for what it is itself, but for its utility in achieving something else.

Dollar Value

The worth of a good or service expressed in terms of the amount of currency required to purchase it.

Net Worth

The total value of an individual's or entity's assets minus liabilities, indicating financial health or position.