Idaho farmers can sell as large a quantity of their potato crop as they wish, provided that:

• A. the market price is above the equilibrium price
• B. the market price is at the equilibrium price
• C. the government sets a price ceiling below the equilibrium price
• D. demand for potatoes is perfectly inelastic

Answer: (B)

Verified step by step guidance

1. Understand the concept of market equilibrium: It is the price at which the quantity of potatoes supplied equals the quantity demanded.
2. Recall that if the market price is above the equilibrium price, there will be a surplus, meaning farmers want to sell more than consumers want to buy, so they cannot sell as large a quantity as they wish.
3. If the market price is below the equilibrium price, there will be a shortage, meaning consumers want to buy more than farmers want to sell, but farmers cannot sell more than they produce.
4. Recognize that when the market price is exactly at the equilibrium price, the quantity supplied equals the quantity demanded, allowing farmers to sell as large a quantity as they wish at that price.
5. Note that government-imposed price ceilings below equilibrium or perfectly inelastic demand do not guarantee farmers can sell unlimited quantities; these conditions affect market dynamics differently.