When the government fixes a minimum support price above the market equilibrium price for a crop, the likely result is:

Correct answer: D) Excess supply, which the government may have to procure

Explanation

A minimum support price is a price floor. When set above equilibrium, quantity supplied exceeds quantity demanded, creating a surplus. To make the floor effective, the government often buys the surplus. Excess demand and black markets are associated with price ceilings.