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vekshin1
3 years ago
13

Victor is a senator from Kansas who wants to help farmers. He has worked to encourage the passage of a law that would impose a b

inding price floor on wheat. What would he expect his critics to say?
a. The binding price floor will encourage consumers to eat too much wheat.
b.The binding price floor will discourage farmers from planting wheat and they will plant other crops instead.
c.The binding price floor will cause a shortage of wheat. The binding price floor will cause a surplus of wheat that farmers will be unable to sell.
d.The binding price floor will discourage farmers from using the most productive farming methods available.
Social Studies
1 answer:
Airida [17]3 years ago
8 0

Answer:

The binding price floor will cause a surplus of wheat that farmers will be unable to sell.

Explanation:

The price floor is the lowest price that can be paid for goods, by binding price floor the senator requires by law a price for the goods above the equilibrium. The critics would say that since the wheat is binded price floor and cannot drop below the price stated by the senator, when the government inflate the price for the market the consumers will deny to pay the price stated and by that the consumption of wheat would fall creating a surplus of wheat, since the goods won’t be sold.  

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