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Refer to the Graph of the Market for Wheat

Question 75

Multiple Choice

  Refer to the graph of the market for wheat. The government adopts a price support program for wheat and supports the wheat price at P ₂. The triangular area defined by points B and C and the intersection of the supply and demand curve represents the A) parity ratio. B) taxpayers' burden. C) efficiency gain. D) efficiency loss. Refer to the graph of the market for wheat. The government adopts a price support program for wheat and supports the wheat price at P ₂. The triangular area defined by points B and C and the intersection of the supply and demand curve represents the


A) parity ratio.
B) taxpayers' burden.
C) efficiency gain.
D) efficiency loss.

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