Policies That Lower Consumer Prices Relative to Free-Market Levels Are

question 6

Multiple Choice

Policies that lower consumer prices relative to free-market levels are said to impart___________.

• A) Consumer surplus
• B) Producer subsidies
• C) Free-market subsidies
• D) General consumer subsidies

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Definitions:

Supply

The total amount of a specific good or service that is available to consumers at a given time and price.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Government Storage

involves the holding or preservation of goods by the government, typically for strategic reserves or to stabilize market prices.