Multiple Choice
When the support price for a good is higher than the market equilibrium price,_____
A) resources tend to flow to their lowest-valued use.
B) the quantity of the good demanded by the consumers will increase.
C) producer surplus enjoyed by the suppliers will decrease in the short run.
D) the prices of specialized resources will decrease.
E) consumer surplus will decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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