When a market has a price support set above the equilibrium price,
A)consumers gain.
B)taxes on consumers decrease.
C)marginal benefit exceeds marginal cost.
D)the market is efficient.
E)farmers gain.

Question

Quizplus · Accepted Answer

When a market has a price support set above the equilibrium price, it means that farmers gain. This is because the government or other organizations set a minimum price above the equilibrium price to support farmers' incomes. As a result, farmers receive a higher price for their goods than they would in a free market, which benefits them. However, this policy can lead to surpluses and inefficiencies in the market.

When a Market Has a Price Support Set Above the Equilibrium