If the price elasticity of demand for farm products is low, abrupt changes in farm output will have a limited effect on prices.
Answer the following statement true (T) or false (F)
False
The price elasticity of food demand is low. As a consequence, when harvests are good, farmers must reduce prices a lot to induce a substantial increase in the quantity of food demanded.
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According to the graph shown, if this economy were an autarky, consumers would get area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A in consumer surplus.
B. ABC in consumer surplus.
C. ABCD in consumer surplus.
D. ABCDEFG in consumer surplus.
In the circular-flow diagram,
a. factors of production flow from government to firms. b. goods and services flow from households to firms. c. income paid to the factors of production flows from firms to households. d. spending on goods and services flows from firms to households.
The maximum price that a buyer will pay for a good is called
a. consumer surplus. b. willingness to pay. c. equilibrium. d. efficiency.
Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. With a P c P t per-unit tariff, the quantities sold by foreign and domestic producers respectively will be:
A. xz and x.
B. xv and xz.
C. x and xz.
D. wy and w.