Asked by Morgan Kollman on Jun 17, 2024
Verified
Price support programs for agricultural products tend to cause shortages of these products.
Price Support Programs
Government interventions to maintain the market price of a commodity or product above its equilibrium level to benefit the producers.
Agricultural Products
Agricultural products are commodities produced through farming and agriculture, such as crops, livestock, and other raw goods.
Shortages
A market situation in which the demand for a product exceeds its supply at a particular price.
- Understand the impact of government actions within the agriculture market.
Verified Answer
MM
Melissa MailboyJun 21, 2024
Final Answer :
False
Explanation :
Price support programs for agricultural products typically lead to surpluses, not shortages, because they encourage production by guaranteeing minimum prices for farmers, often above market equilibrium prices.
Learning Objectives
- Understand the impact of government actions within the agriculture market.