Which of the Following Is the Most Likely Explanation for the Imposition

question 68

Multiple Choice

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

• A)Policymakers have studied the effects of the price floor carefully,and they recognize that the price floor is advantageous for society as a whole.
• B)Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
• C)Buyers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.
• D)Sellers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.

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Definitions:

Inventory Purchases

The total cost of goods bought for resale during a specific financial period.

Cost of Goods Sold

Expenses specifically associated with the production of a company's sold products, such as materials and labor.

Ending Inventory

The total value of a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold, at the end of an accounting period.

Inventory Unit Costs

The cost associated with a single unit of inventory, taking into account all costs of acquisition, production, and other direct costs.