Under the Target Price System

question 47

Multiple Choice

Under the target price system,

• A)supply is restricted.
• B)consumers must pay the target price.
• C)payments are made to the government when the price paid by consumers rises above the target price.
• D)farmers are paid a deficiency payment if the market price for their goods is below the target price.
• E)a and c

---

Definitions:

Tornado Chart

A type of bar chart where variables are displayed horizontally, typically showing the impact of variables in a sensitivity analysis.

Crystal Ball

In a figurative sense, a tool or method used to predict future events or outcomes, often associated with uncertainty.

Sensitivity Information

Data that reveals how changes in input variables affect the outcome of a model or system, often used in the context of risk analysis.

Cumulative Profit

The total amount of profit or loss generated over a specific period of time, taking into account all revenues and expenses up to that point.