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If the Government Establishes a Price Floor at 75 Percent

Question 100

Multiple Choice

If the government establishes a price floor at 75 percent of parity, this would imply that


A) price ceilings on farm goods must be 125 percent of parity
B) price ceilings on farm goods must be 25 percent of parity
C) farm prices can be no less than 75 percent of their 1910-1914 level
D) farm prices can only rise to 75 percent of their 1910-1914 level
E) farmers' purchasing power will be no less than 75 percent of 1910-1914 purchasing power

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