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    Exam 39: Agriculture: Problems, Policies, and Unintended Effects
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    Exhibit 39-2 -Refer to Exhibit 39-2.If P<sub>1 </Sub>is a Price Support,the Cost
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Exhibit 39-2 -Refer to Exhibit 39-2.If P1 is a Price Support,the Cost

Question 111

Question 111

Multiple Choice

Exhibit 39-2
Exhibit 39-2    -Refer to Exhibit 39-2.If P<sub>1 </sub>is a price support,the cost of the price support program to the government is A)  P<sub>1 </sub>x Q<sub>2</sub>. B)  P<sub>1</sub> x (Q<sub>2</sub> - Q<sub>0</sub>) . C)  P<sub>1</sub> x (Q<sub>0</sub> - Q<sub>1</sub>) . D)  P<sub>1</sub> x (Q<sub>2</sub> - Q<sub>1</sub>) . E)  none of the above
-Refer to Exhibit 39-2.If P1 is a price support,the cost of the price support program to the government is


A) P1 x Q2.
B) P1 x (Q2 - Q0) .
C) P1 x (Q0 - Q1) .
D) P1 x (Q2 - Q1) .
E) none of the above

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