-Refer to the above figure for the corn market.The government wants to set an effective price support in the corn market.To be effective the price should be set
A)below $P _ { 1 }$ .
B)at $P _ { 1 }$ .
C)at $P _ { 2 }$ .
D)at $\mathrm { P } _ { 3 }$ .

Question

-Refer to the above figure for the corn market.The government wants to set an effective price support in the corn market.To be effective the price should be set
A)below $P _ { 1 }$ . 
B)at $P _ { 1 }$ . 
C)at $P _ { 2 }$ . 
D)at $\mathrm { P } _ { 3 }$ .

Quizplus · Accepted Answer

An effective price support must be set above the equilibrium price to ensure that the market price does not fall below the support level. $P_3$ is above the equilibrium price, making it an effective price support.

-Refer to the Above Figure for the Corn Market P1P _ { 1 }P1​

-Refer to the Above Figure for the Corn Market $P _ { 1 }$