Refer to Figure 29.3 for a cotton market with an equilibrium price of P₁ and a Commodity Credit Corporation (CCC) loan rate set above P₁.Given this situation, cotton farmers are most likely to A) Sell their cotton on the market and repay the CCC loan with the proceeds plus other funds to make up the difference. B) Sell their cotton on the market and repay only a portion of the CCC loan. C) Give their cotton to the CCC and not repay the loan. D) Leave the cotton farming business.

Question

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The Answer of Refer to Figure 29.3 for a cotton market with an equilibrium price of P₁ and a Commodity Credit Corporation (CCC) loan rate set above P₁.Given this situation, cotton farmers are most likely to A) Sell their cotton on the market and repay the CCC loan with the proceeds plus other funds to make up the difference. B) Sell their cotton on the market and repay only a portion of the CCC loan. C) Give their cotton to the CCC and not repay the loan. D) Leave the cotton farming business.