If the government created a surplus of an agricultural product due to price supports, how might they dispose of this surplus?
A) give it away to a foreign country
B) purchase it and store it away
C) have the farmer destroy the crop
D) Any of these answers might be a successful tool in disposing of agricultural surpluses.

Question

Quizplus · Accepted Answer

The best choice would depend on the specific circumstances, but any of these options could be used to dispose of surplus agricultural products. A government might choose to give the surplus away to a foreign country as a form of aid, purchase it and store it away for later use, or have the farmer destroy the crop in order to limit the supply and increase prices. Ultimately, the choice would depend on the government's goals for the surplus product and the most effective way to manage the market.

If the Government Created a Surplus of an Agricultural Product