Who Would Most Likely Lobby Congress for a Price Support

question 117

Multiple Choice

Who would most likely lobby Congress for a price support on wool?

• A) retail sweater outlets
• B) consumers of wool caps
• C) taxpayers
• D) wool producers
• E) sheep

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Definitions:

Government Price Floor

A minimum price set by the government for certain goods, ensuring producers receive a minimum return regardless of market forces.

Market For Butter

The supply and demand dynamics concerning the sale and purchase of butter.

Surplus

A situation in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.

Binding Price Floor

A minimum price set by the government that is above the equilibrium price, causing a surplus of the good.