If the Federal Government Sets a Minimum Price for Wheat

question 375

Multiple Choice

If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50, then

• A) a surplus will be created causing the price to fall to the equilibrium price of $4.50.
• B) a permanent surplus will develop because the government established the minimum price at $5.00.
• C) a shortage will be created causing the price to rise to the equilibrium price of $4.50.
• D) a permanent shortage will develop because the government established the minimum price at $5.00.

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Definitions:

Vitamin D

A fat-soluble vitamin essential for healthy bones and immune function, obtained through sun exposure, diet, and supplements.

Sunshine

The light and warmth that come from the sun, essential for life on Earth by providing energy that supports most ecosystems.

Thrifty Genotype

Human genotype that permits efficient storage of fat to draw on in times of food shortage and conservation of glucose and nitrogen.

Glucose and Fat

Two primary sources of energy for the body, where glucose is a simple sugar and fat is composed of fatty acids and glycerol.