Farm price support programs most often take the form of price
A)Ceilings,which cause shortages.
B)Floors,which cause shortages.
C)Ceilings,which cause surpluses.
D)Floors,which cause surpluses.

Question

Quizplus · Accepted Answer

Farm price support programs take the form of price floors, which cause surpluses. The government sets a minimum price for a particular agricultural product and purchases any surplus that farmers are unable to sell at that price. This can lead to an oversupply of the product, which could then be sold on the global market at a lower price, ultimately putting farmers at a disadvantage.

Farm Price Support Programs Most Often Take the Form of Price