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22 July, 05:14

Suppose the federal government provides wheat farmers with a price floor above the market equilibrium price of wheat, creating a surplus. Which of the following causes a reduction in the surplus of wheat?

a. A decrease in the market equilibrium price of wheat

b. A decrease in the demand for wheat

c. An increase in the supply of wheat

d. Elimination of the price floor

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Answers (1)
  1. 22 July, 05:34
    0
    D. Elimination of the price floor

    Explanation:

    A lowered priced goods facilitates increased quantity demanded but a decreased quantity of a specific goods/product supplied brings about reduction in surplus.
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