If Price Supports Are Established and Producers Are Producing More

question 130

Multiple Choice

If price supports are established and producers are producing more than consumers want to buy at that price, to maintain producers' income the government will have to

• A) reduce price supports.
• B) increase price supports.
• C) buy the surplus.
• D) restrict output.

---

Definitions:

Chapter 11

A provision of the United States Bankruptcy Code that permits reorganization under the bankruptcy laws of the United States.

Debtor's Assets

The property or funds owned by a debtor that may be used or taken to repay debts.

Repayment-plan Bankruptcy

A bankruptcy procedure that involves restructuring a debtor's payment obligations to pay off debts over time, under court supervision.

U.S. Trustee

A government official who performs administrative tasks that a bankruptcy judge would otherwise have to perform.