If the market price for a crop is $4.00 a bushel and the price support is $5.00, then dropping the price support to $3.50

Question

Quizplus · Accepted Answer

If the price support is lowered to $3.50 and the market price remains at $4.00, farmers will receive the market price of $4.00 per bushel, as the government will no longer be providing support above that price. Therefore, the price received by farmers will fall to $4.00, not $3.50.

If the Market Price for a Crop Is $4