Question

The government must mandate lower prices when beef surpluses exist; otherwise, the quantity supplied will continue to exceed the quantity demandedA. TrueB. False

Answer 1

Answer: True

Explanation:

Beef surplus in the market simply means that there's excess of beef in the market. In this case, the quantity supplied for beef is more than the quantity that the consumers demand, which means that the price at which beef is sold is more than the equilibrium price.

Due to thus reason, the government must mandate lower prices as this will help in increasing the quantity demanded of beef, reduce quantity supplied and hence, the surplus will be curtailed.