One Result of the Agriculture Price Supports Cited in the Text

question 188

Multiple Choice

One result of the agriculture price supports cited in the text is that

• A) sometimes surplus food is given away.
• B) food shortages result in most cases.
• C) small farms receive most of the benefits.
• D) none of the above.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual market price they receive.

Support Price

A price level set by the government or a regulatory body to stabilize the market price of a commodity, often by purchasing the commodity at this price or providing subsidies to producers.

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service versus what they actually receive in the market.

Government Policy

Governmental actions intended to influence economy or social behavior, including laws, regulations, and fiscal decisions.