Which of the Following Will Likely Occur When Price Floors

question 85

Multiple Choice

Which of the following will likely occur when price floors in agriculture are implemented?

• A) Quantity supplied will exceed quantity demanded.
• B) Quantity demanded will exceed quantity supplied.
• C) Farmland will be underutilized.
• D) Supply will decrease.

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Definitions:

Developing Nation

A country with a lower level of industrialization, lower living standards, and lower Human Development Index (HDI) compared to developed nations.

Underemployment

Underemployment refers to situations where workers are employed below their capacity, either through part-time jobs when they seek full-time employment or in positions that underutilize their skills.

Labor Resources

The available human workforce; the people available for work and their skills, which are vital for the production of goods and services.

Agriculture

The process of tilling the land, planting crops, and breeding animals to produce food, materials, and various goods.