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(Figure: Supply and Demand in Agriculture) Look at the Figure

Question 181

Multiple Choice

(Figure: Supply and Demand in Agriculture) Look at the figure Supply and Demand in Agriculture. If a price floor at P4 is set to help improve farm incomes and the government wants to assure farmers that their output will be purchased, the government must purchase an amount of output equal to:


A) Q3 - Q0.
B) Q3 - Q1.
C) Q2 - Q1.
D) Q1 - Q3.

Correct Answer:

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