Assume that, in a large country such as the United States, a target price is set above the equilibrium world market price.  Which of the following occurs?Question 1Select one:a.Farmers produce the same amount and the market price increases.b.Farmers produce more and the market price stays the same.c.Farmers produce more resulting in a surplus.d.Farmers produce less resulting in a shortage.e.Farmers produce less and the market price decreases.

If the market price is above the equilibrium price:Multiple Choicea surplus will result and consumers will bid prices up.a shortage will occur and producers will produce more and lower prices.producers will make extremely high profits.a surplus will occur and producers will produce less and lower prices.

The equilibrium price is the point where:A.the quantity demanded equals the quantity supplied.B.suppliers make a profit.C.increased demand causes prices to rise.D.increased supply causes prices to rise.E.suppliers do not make a profit.

What combination of changes would most likely decrease the equilibrium price?Multiple Choicewhen demand decreases and supply decreaseswhen supply increases and demand decreaseswhen supply decreases and demand increaseswhen demand increases and supply increases

Question 12If the price of a good is held above the equilibrium price:1 pointdemand will decrease.quantity demanded will exceed quantity supplied.quantity supplied will exceed quantity demanded.supply will increase.

Direct Payment Programs involve the setting of a target price for an agricultural commodity. When the target price is set higher than the market price which of the following will not occur?Question 44Select one:a.there will be an increase in domestic or foreign demand, increasing farm prices and income. b.there will be a surplus of that product relative to the demand for it.c.there will be downward pressure on the market equilibrium price. d.the government will make deficiency payments to farmers.e.excess production.