Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?
A)Policymakers have studied the effects of the price floor carefully,and they recognize that the price floor is advantageous for society as a whole.
B)Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
C)Buyers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.
D)Sellers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.

Question

Quizplus · Accepted Answer

The most likely explanation for the imposition of a price floor on the market for corn is that sellers of corn have pressured policymakers into imposing the price floor. This is because a price floor is beneficial for sellers as it ensures that they receive a higher price for their product than they would in a free market. Buyers, on the other hand, would have no incentive to pressure policymakers to impose a price floor as it would result in them having to pay a higher price for corn. Policymakers may also be influenced by lobbying efforts from corn producers or industry groups representing their interests.

Which of the Following Is the Most Likely Explanation for the Imposition