Under the target price system,
A)supply is restricted.
B)consumers must pay the target price.
C)payments are made to the government when the price paid by consumers rises above the target price.
D)farmers are paid a deficiency payment if the market price for their goods is below the target price.
E)a and c

Question

Quizplus · Accepted Answer

Under the target price system, farmers are paid a deficiency payment if the market price for their goods is below the target price. This is meant to provide a safety net for farmers and stabilize prices for consumers. Consumers are not required to pay the target price and there are no payments made to the government if the price paid by consumers rises above the target price.

Under the Target Price System