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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Refer to Figure 2-14. Points A, B, and D represent feasible outcomes for this economy.
Indicate whether the statement is true or false.
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)
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
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