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Refer to the Graph of the Market for Wheat

Question 191

Multiple Choice

  Refer to the graph of the market for wheat. The government adopts a price support program for wheat and supports the wheat price at P ₂. As a result of this price support program, A) there will be a shortage of wheat in the amount of AB. B) there will be a surplus of wheat in the amount of Q₁ Q₂. C) there will be a surplus of wheat in the amount of Q₀ Q₂. D) wheat farmers will receive less total income than if there were no price support program. Refer to the graph of the market for wheat. The government adopts a price support program for wheat and supports the wheat price at P ₂. As a result of this price support program,


A) there will be a shortage of wheat in the amount of AB.
B) there will be a surplus of wheat in the amount of Q₁ Q₂.
C) there will be a surplus of wheat in the amount of Q₀ Q₂.
D) wheat farmers will receive less total income than if there were no price support program.

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