A price support directly sets the
A) amount of production.
B) subsidy the government must receive from producers.
C) equilibrium quantity.
D) lowest price for which the good may be sold.
E) highest price for which the good may be sold.

Question

Quizplus · Accepted Answer

Price supports are mechanisms used by governments to set a minimum price for a particular good, ensuring that it cannot be sold for less than this price. This helps stabilize the market for producers of the good, often in the agricultural sector, by guaranteeing them a minimum income for their products.

A Price Support Directly Sets the