An agricultural market price support policy establishes a price floor, which:
A)decreases the price paid by consumers.
B)does not change the price paid by consumers.
C)increases the price received by farmers.
D)decreases the price received by farmers.

Question

Quizplus · Accepted Answer

The purpose of an agricultural market price support policy is to increase the price received by farmers by establishing a price floor that guarantees a minimum price for their products. This price floor is typically set above the market equilibrium price, which can result in higher prices for consumers in the short run, but in the long run, it is meant to ensure that farmers receive a fair price for their goods.

An Agricultural Market Price Support Policy Establishes a Price Floor