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If Agricultural Price Supports Are Combined with an Output Restriction,then

Question 58

Multiple Choice

If agricultural price supports are combined with an output restriction,then there is:


A) an expansion of both consumer surplus and producer surplus due to a deadweight loss
B) an expansion of consumer surplus and reduction in producer surplus due to a deadweight loss
C) a reduction of both consumer surplus and producer surplus due to a deadweight loss
D) the disappearance of any deadweight loss
E) no change in consumer surplus or producer surplus

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