Which of the following is true?
A) In a price support program, consumers end up paying the price support.
B) In a target price system, consumers end up paying the target price.
C) In a target price system, the per-unit deficiency payment is equal to the difference between the quantity demanded at the market price and the quantity supplied at the market price.
D) Acreage allotment programs directly (as opposed to indirectly) raise agricultural product prices.
E) b and d

Question

Quizplus · Accepted Answer

In a price support program, the government buys up the surplus product at a price above the market equilibrium, in order to maintain a minimum price floor. The cost of this program is ultimately passed on to consumers through higher prices.

Which of the Following Is True