Under the Deficiency-Payment System of Agricultural Price Supports, the Cost

Multiple Choice

Under the deficiency-payment system of agricultural price supports, the cost to the government may be higher than under the offer-to-purchase program if:

A) if foreign governments cease to subsidize agricultural production.
B) if production quotas are in place.
C) if the demand for the product is elastic.
D) if the demand for the product is inelastic.