If Agricultural Price Supports Are Combined with an Output Restriction,then

question 62

Multiple Choice

If agricultural price supports are combined with an output restriction,then there is:

• A)a transfer of consumer surplus to producer surplus due to the higher price
• B)a transfer of producer surplus to consumer surplus due to the higher price
• C)a transfer of producer surplus to consumer surplus due to the lower price
• D)a transfer of consumer surplus to producer surplus due to the lower price
• E)no change in the consumer surplus or producer surplus

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