Question

Why would a large crop surplus be a problem for farmers? A. Surpluses are destroyed by the government. B. Surpluses drive down prices. C. Surpluses drive up prices. D. Surpluses drive up the price of agriculture equipment.

Answer 1

B

Step-by-step explanation:

When a surplus of crops or livestock is produced, they cannot be sold at a high enough price to make a profit

Answer 2

The answer is b. Surpluses drive down prices

Step-by-step explanation:

If you have a large volume of crops, it would not drive up the price simply because there is not a lot of demand for the crop. In that sense, both c and d (even though d is relevant to the equipment) are incorrect. If there is a lot of surplus, farmers will have to lower their prices in order to sell it. They lose in profit which is why large crop surplus are a problem for farmers.