Use the Following to Answer Question(s): Supply and Demand in Agriculture

Multiple Choice

Use the following to answer question(s) : Supply and Demand in Agriculture

-(Exhibit: Supply and Demand in Agriculture) If the government set an effective price floor at one of the prices shown on the vertical axis:

A) Q₃ bushels of wheat would be supplied.
B) with this much wheat on the market, the price would fall to P₁.
C) the resulting shortage would be made up by the government out of its accumulated stocks.
D) all of the above would be true.