Use the following to answer question(s): Supply and Demand in Agriculture

-(Exhibit: Supply and Demand in Agriculture) To help farmers:
A) a price floor would be set at P₄, causing a surplus of Q₃ - Q₀.
B) a price floor would be set at P₂, causing a surplus of Q₂ - Q₀.
C) a price ceiling would be set at P₄, causing a surplus of Q₂ - Q₁.
D) a price floor would be set at P₁, causing a shortage of Q₃ - Q₀.

Question

Use the following to answer question(s): Supply and Demand in Agriculture
 
-(Exhibit: Supply and Demand in Agriculture) To help farmers:
A) a price floor would be set at P₄, causing a surplus of Q₃ - Q₀. 
B) a price floor would be set at P₂, causing a surplus of Q₂ - Q₀. 
C) a price ceiling would be set at P₄, causing a surplus of Q₂ - Q₁. 
D) a price floor would be set at P₁, causing a shortage of Q₃ - Q₀.

Quizplus · Accepted Answer

A price floor set above the equilibrium price (P₄) would help farmers by ensuring they receive a higher price for their products, but it would also cause a surplus because the quantity supplied (Q₃) would exceed the quantity demanded (Q₀).

Use the Following to Answer Question(s): Supply and Demand in Agriculture