Describe the two major problems confronting U.S. agriculture.
What will be an ideal response?
The first problem confronting U.S. agriculture is a long-term problem: inelastic demand. There is a limit to the amount of food people want to eat. This is reflected in the relatively inelastic demand curve for food. With low price elasticity, abrupt changes in farm output have a magnified effect on market prices. The second problem is a short-run issue: prices of farm products are subject to abrupt short-term swings.
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In this supply and demand curve, the tax causes the equilibrium quantity of the good (bought and sold) to ______.
a. rise
b. fall
c. move further right on the demand curve
d. move further right on the supply curve
If the price elasticity of demand is 1, demand is:
A. upward sloping. B. inelastic. C. unit elastic. D. elastic.
A flexible exchange rate system guarantees a country will not experience an exchange rate crisis
Indicate whether the statement is true or false
A production function is a(n)
A. technological relationship. B. economic relationship. C. accounting relationship. D. cost relationship.