An Agricultural Price Support

question 95

Multiple Choice

An agricultural price support

• A)will create a surplus in the relevant market,assuming the price support is above equilibrium price.
• B)will create a shortage in the relevant market,assuming the price support is above equilibrium price.
• C)is an example of a price floor.
• D)will lead to greater total revenue for farmers if demand (for the product)farmers sell is inelastic between the equilibrium price and the price support (and assuming the price support is above equilibrium price).
• E)a,c,and d

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Definitions:

Sense Of Entitlement

The belief that one inherently deserves privileges or special treatment regardless of their actual achievements or efforts.

Polygamy

A woman or man has two or more spouses.

Polygyny

A form of marriage in which a man is allowed to have more than one wife at the same time.

Polyandry

A form of marriage in which a woman has two or more husbands at the same time.