Choose the best statement. A. A subsidy to peanut growers lowers peanut growers\

Question

Choose the best statement. A. A subsidy to peanut growers lowers peanut growers' costs, lowers the market price of peanuts, and increases the demand for peanuts OB. For a support price set above the equilibrium price to increase peanut growers' incomes, they must also receive a subsidy OC. A price support and a subsidy to peanut growers will make the peanut market more efficient if the support price is below the market price. OD. A price support for peanut growers is a guaranteed price for peanuts, which increases the quantity of peanuts produced

Explanation / Answer

The correct and best statement is a price support given to farmers will ensure a certain amount of production of a certain commodity.The support price as a guaranteed price for the growers of the commodity which virtually assures that the farmers will not get lesser than this price, thereby removing market price uncertainty and future yield uncertainty. The answer is D.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---