Which of the following statements about price controls are correct? (A) A price ceiling is set below the equilibrium price to protect consumers, often resulting in a shortage. (B) A price floor is set above the equilibrium price to ensure that producers receive a fair minimum price. (C) Price ceilings above the equilibrium price create a situation of surplus in the market. (D) The Food Availability Decline (FAD) theory applies to situations where shifts in supply and demand impact food security.

1
1. (A), (B), (D)
2
2. (B), (C), (D)
3
3. (A), (C), (D)
4
4. (A), (B)

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