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1.8 The market mechanism, market failure and government intervention in markets

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Question 3

Which one of the following would generate a short-run disequilibrium with excess supply in the market for agricultural wheat?

A minimum price (price floor) is set above the current market equilibrium price

A severe drought decreases the domestic harvest of wheat

A successful marketing campaign increases consumer preference for wheat-based products

The government removes an existing subsidy paid to agricultural wheat farmers

1.8 The market mechanism, market failure and government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.8 The market mechanism, market failure and government intervention in markets