Reduce the size of the corn surplus

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Reference no: EM131108235

Suppose that the government has been supporting the price of corn. It's free market price is $2.50 per bushel, but the govt. 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?

A: Decrease the support price

B: Institute an acreage allotment program

C: Decrease demand by taxing corn purchases

D: Raise the support price.

Reference no: EM131108235

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