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-The Above Figure Shows Supply and Demand Curves for Milk

Question 121

Multiple Choice

  -The above figure shows supply and demand curves for milk.In an effort to help farms,the government passes a law that establishes a $3 per gallon price support,but allows farmers to decide how much milk to produce.The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon.The welfare loss of this price support is A)  j. B)  f + g. C)  b + c. D)  f + g + h + i + j.
-The above figure shows supply and demand curves for milk.In an effort to help farms,the government passes a law that establishes a $3 per gallon price support,but allows farmers to decide how much milk to produce.The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon.The welfare loss of this price support is


A) j.
B) f + g.
C) b + c.
D) f + g + h + i + j.

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