Government might try to reduce the size of the corn surplus

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Suppose that the government has been supporting the price of corn. It’s free market price is $2.50 per bushel, but the government has been setting a support price of $3.50 per bushel. Which of the following are ways that the government might try to reduce the size of the corn surplus? (Select one or more answers from the choices shown). a. Decrease the support price. b. Institute and acreage allotment program. c. Decrease demand by taxing purchases of corn. d. Raise the support price.

Reference no: EM131098326

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