Recall the Application about the policies used by the European Union to support the agricultural sectors of is member countries to answer the following question(s).
-According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. This would occur if these policies set a ________ price which was ________ the market equilibrium price.

Question

Quizplus · Accepted Answer

The European Union's agricultural policies likely involved setting minimum prices for agricultural products that were above the market equilibrium price. This would encourage production but lead to excess supply because the price floor would be higher than what the market would naturally set, leading to more goods being produced than are demanded at that price.

Recall the Application About the Policies Used by the European