All of the following statements are true regarding voluntary production reduction programs EXCEPT:
A) they offer firms incentives to reduce their production voluntarily.
B) they include payments to producers who reduce production.
C) they are an attempt to limit supply.
D) they are an attempt to protect consumers from high prices.
Correct Answer:
Verified
Q23: The market demand function for wheat is
Q24: With a price floor:
A) producer surplus will
Q25: A price floor:
A) establishes a maximum price.
B)
Q26: With a price floor:
A) consumer surplus falls
Q27: The market demand function for wheat is
Q29: A voluntary production reduction program:
A) offers firms
Q30: A subsidy:
A) increases the amount that buyers
Q31: A production quota program:
A) places limitations on
Q32: With a price floor:
A) producer surplus will
Q33: A production quota program:
A) imposes limits on
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