A.  A price support that is a price floor set below the equilibrium price has no effects.
B.  A price support that is a price floor set above the equilibrium price creates a surplus.
C.  A price floor is inefficient and unfair.
D.  An agricultural price support is a price floor.

 7.3  Explain how a price support in the market for an agricultural product creates a surplus, inefficiency, and unfairness.

A.  A price support that is a price floor set below the equilibrium price has no effects.
B.  A price support that is a price floor set above the equilibrium price creates a surplus.
C.  A price floor is inefficient and unfair.
D.  An agricultural price support is a price floor.

 7.3  Explain how a price support in the market for an agricultural product creates a surplus, inefficiency, and unfairness.

A.  A price support that is a price floor set below the equilibrium price has no effects.
B.  A price support that is a price floor set above the equilibrium price creates a surplus.
C.  A price floor is inefficient and unfair.
D.  An agricultural price support is a price floor.

Take the optional post-study bonus point quizzes on Government Influences on Markets on Saturday following Module 3.

Take the optional pre-study bonus point quizzes on Externalities on Sunday preceding Module 4.