Figure: Supply and Demand in Agriculture
(Figure: Supply and Demand in Agriculture) Look at the figure Supply and Demand in Agriculture.If the equilibrium price for wheat is as shown in the graph, how could the government help increase farmers' income?
A.A price floor could be set at P₄, causing a surplus of Q₃ - Q0.
B.A price floor could be set at P₂, causing a surplus of Q₂ - Q0.
C.A price ceiling could be set at P₄, causing a surplus of Q₂ - Q₁.
D.A price floor could be set at P₁, causing a shortage of Q₃ - Q0.

Question

Figure: Supply and Demand in Agriculture
   (Figure: Supply and Demand in Agriculture) Look at the figure Supply and Demand in Agriculture.If the equilibrium price for wheat is as shown in the graph, how could the government help increase farmers' income? 
A.A price floor could be set at P₄, causing a surplus of Q₃ - Q0.
B.A price floor could be set at P₂, causing a surplus of Q₂ - Q0.
C.A price ceiling could be set at P₄, causing a surplus of Q₂ - Q₁.
D.A price floor could be set at P₁, causing a shortage of Q₃ - Q0.

Quizplus · Accepted Answer

The Answer of Figure: Supply and Demand in Agriculture
   (Figure: Supply and Demand in Agriculture) Look at the figure Supply and Demand in Agriculture.If the equilibrium price for wheat is as shown in the graph, how could the government help increase farmers' income? 
A.A price floor could be set at P₄, causing a surplus of Q₃ - Q0.
B.A price floor could be set at P₂, causing a surplus of Q₂ - Q0.
C.A price ceiling could be set at P₄, causing a surplus of Q₂ - Q₁.
D.A price floor could be set at P₁, causing a shortage of Q₃ - Q0.