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If the Government Wished to Institute a Set-Aside Program to Support

Question 79

Multiple Choice

  If the government wished to institute a set-aside program to support the price at P<sub>1</sub> rather than P<sub>2</sub> in Figure 29.1, by how much would market output be reduced? A)  Q<sub>5</sub> to Q<sub>1.</sub> B)  Q<sub>3</sub> to Q<sub>1.</sub> C)  Q<sub>3</sub> to Q<sub>2.</sub> D)  Q<sub>4</sub> to Q<sub>2.</sub> If the government wished to institute a set-aside program to support the price at P1 rather than P2 in Figure 29.1, by how much would market output be reduced?


A) Q5 to Q1.
B) Q3 to Q1.
C) Q3 to Q2.
D) Q4 to Q2.

Correct Answer:

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