Multiple Choice
Suppose that an increase in the global demand for corn has pushed the equilibrium price of corn above the government's support price. Which of the following would be true?
A) price would stay at the support price and government would not buy any corn.
B) quantity supplied would equal quantity demanded.
C) quantity supplied would be greater than quantity demanded and the government would buy more corn.
D) quantity supplied would be less than quantity demanded and the government would have to sell corn.
Correct Answer:
Verified
Correct Answer:
Verified
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