If the demand curve for agricultural products is elastic and farmers as a group become more productive, then prices of agricultural goods will __________ and total revenue earned by farmers will __________
A) decrease; increase
B) decrease; decrease
C) increase; increase
D) increase; decrease
E) We cannot answer this question without knowing how elastic the demand curve is.
A
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Which of the following can be classified as a highly specific asset?
a. A country's soldiers b. A wind turbine in an installation that produces "renewable" electricity c. A cattle farm d. A cruise ship
Refer to Figure 2-14. Points A, B, and D represent feasible outcomes for this economy.
Indicate whether the statement is true or false.
Suppose that the percentage change in demand is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand?
A. 0 B. 1 C. 2 D. 3
In perfect competition, price is equal to marginal revenue, while in monopoly, price is greater than marginal revenue.
Answer the following statement true (T) or false (F)