Question

If the U.S. government starts to sell off its stockpile of cheese:____.

a. the equilibrium quantity demanded will rise.
b. farmers will hoard the cheese they produce.
c. consumers will be less willing to purchase cheese.
d. the quantity of cheese that spoils before sale will rise.

Answer 1

D

Step-by-step explanation:

if the government sells off its cheese, there would be a rightward shift of the supply curve. As a result, equilibrium price would fall and equilibrium quantity supplied would increase.

Due to the government's action, there would be an excess supply of cheese over the demand for cheese. More cheese would be available for sale and less cheese would be purchased. This would lead to an increase in spoilage rates before sales