Multiple Choice
Consider the Canadian market for barley. Suppose a marketing board sets a production quota which is below the equilibrium quantity. The quota will cause the price of barley to and the total revenue earned by Canadian barley farmers to .
A) fall; fall if demand is elastic.
B) remain unchanged; remain unchanged.
C) rise; rise if demand is inelastic.
D) fall; fall if demand is inelastic.
E) rise; rise if demand is elastic.
Correct Answer:
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