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.If the CCC loan rate is increased, the A) Surplus in the market will become larger. B) Surplus in the market will become smaller. C) Shortage in the market will become larger. D) Shortage in the market will become smaller.

Question

Quizplus · Accepted Answer

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.If the CCC loan rate is increased, the A) Surplus in the market will become larger. B) Surplus in the market will become smaller. C) Shortage in the market will become larger. D) Shortage in the market will become smaller.