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Suppose the Equilibrium Price of Cotton Is $100 Per Ton

Question 179

Multiple Choice

Suppose the equilibrium price of cotton is $100 per ton.A price support set at ________ than $100 per ton ________.


A) less; increases producer surplus
B) less; increases consumer surplus
C) more; increases consumer surplus
D) more; decreases marginal cost
E) more; creates a surplus that the government must buy

Correct Answer:

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