Farm price supports

Name: Farm price supports
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Farm price supports

Quizplus · Accepted Answer

Farm price supports can lead to an excess supply of supported farm products because farmers have less incentive to limit production when they receive guaranteed prices, resulting in a possible surplus that may not have a market demand, resulting in an oversupply. This can lead to higher costs for the government and taxpayers who pay for the cost of supporting the prices and may also lead to increased storage costs as surplus production is stored.

Farm Price Supports