If the demand for an agricultural product is inelastic, a bumper crop will:
A. raise price and decrease total revenues.
B. raise price and increase total revenues.
C. lower price and decrease total revenues.
D. lower price and increase total revenues.
Answer: C
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In the above figure, the letters A, B, and C represent which positions in the business cycle?
A) peak, expansion, and recession, respectively B) recession, expansion, and peak, respectively C) expansion, peak, and recession, respectively D) peak, recession, and expansion, respectively
If the population growth rate is 2%, the incremental capital output ratio is 3, the saving ratio is 24%, and the depreciation rate is 5%, the rate of growth of income is
(a) 1%. (b) 2%. (c) 3%. (d) 5%. (e) 8%.
A bowed Production Possibilities Curve (PPC) indicates
A) inefficient production. B) that the trade-off between the 2 goods is not constant. C) changing technology. D) only 1 good is always being produced.
If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply. B. there won't be enough workers willing to work at that wage. C. firms will have to offer higher wages to attract the workers they need. D. All of these statements are true.