An agricultural market price support policy establishes a binding price floor,which:
A)decreases the price paid by consumers.
B)does not change the price paid by consumers.
C)increases the price received by farmers.
D)decreases the price received by farmers.

Question

Quizplus · Accepted Answer

An agricultural market price support policy establishes a binding price floor which increases the price received by farmers. This policy guarantees a minimum price for farmers' products and helps them earn a fair income. However, it may not change the price paid by consumers as the cost of the policy may be absorbed by the government or passed on to the consumers.

An Agricultural Market Price Support Policy Establishes a Binding Price