If the U.S.government starts to sell off its stockpile of cheese,
A)consumers will be less willing to purchase cheese.
B)the equilibrium quantity demanded will rise.
C)farmers will hoard the cheese they produce.
D)the quantity of cheese that spoils before sale will rise.

Question

Quizplus · Accepted Answer

If the government starts to sell off its stockpile of cheese, there will be an increase in the supply of cheese in the market. As a result, the equilibrium quantity demanded will rise as consumers will be willing to buy more cheese at a lower price. This can be seen as a movement along the demand curve where the quantity demanded increases as the price of cheese falls.

If the USGovernment Starts to Sell Off Its Stockpile of Cheese