Author Question: According to this Application, in recent years the European Union has reformed its agriculture ... (Read 111 times)

SAVANNAHHOOPER23 · **on:** Jun 30, 2018

According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices.

A) increase; lowering B) increase; raising C) reduce; lowering D) reduce; raising

Question 2

According to this Application, the policies used by the European Union to support the agricultural sectors of its member countries created excess supply. Excess supply can be generated if a government establishes a

A) price ceiling above the market equilibrium price.
B) price ceiling below the market equilibrium price.
C) price floor above the market equilibrium price.
D) price floor below the market equilibrium price.