-A price support directly sets the
A) highest price for which the good may be sold.
B) lowest price for which the good may be sold.
C) amount of production.
D) equilibrium quantity.
E) subsidy the government must receive from producers.

Question

-A price support directly sets the
A) highest price for which the good may be sold. 
B) lowest price for which the good may be sold. 
C) amount of production. 
D) equilibrium quantity. 
E) subsidy the government must receive from producers.

Quizplus · Accepted Answer

Price supports are mechanisms used by governments to set a minimum price for a commodity, ensuring that it cannot be sold for less. This helps stabilize the income of producers of the commodity by guaranteeing them a minimum price for their goods.

-A Price Support Directly Sets the