Farm price support programs most often take the form of price
A)Ceilings above the equilibrium price.
B)Floors above the equilibrium price.
C)Ceilings below the equilibrium price.

Question

Quizplus · Accepted Answer

Price support programs are designed to protect farmers from price fluctuations that can often cause financial instability. In order to achieve this, governments often introduce minimum price floors above the equilibrium price of the market. This ensures that if the market price falls below this floor, the government will purchase the surplus supply from the farmers, effectively creating a price support program.

Farm Price Support Programs Most Often Take the Form of Price