Because the demand for agricultural products is highly price-inelastic, a modest increase in supply will cause:
A. Relatively large declines in farm prices and incomes
B. Relatively large increases in farm prices and incomes
C. A small decline in farm prices, but an increase in farm incomes
D. A large decline in farm prices, but an increase in farm incomes
A. Relatively large declines in farm prices and incomes
You might also like to view...
In the base year, real GDP ________ nominal GDP.
A. is equal to B. is less than C. is greater than D. could be greater than or less than
The WTO was:
a. formed shortly after World War II. b. authorized in the American Constitution. c. formed in 1995. d. formed in 1876. e. formed to unify the European continent.
The poverty rate is a measure of the percentage of people whose incomes fall below
a. a relative level of income. b. an absolute level of income. c. the median income for a family of three. d. the bottom 20 percent of the income distribution.
Exhibit 1A-5 Straight line
In Exhibit 1A-5, as X increases along the horizontal axis, from point C to point D on the line, the Y values
A. increase so the relationship between X and Y is direct. B. decrease so the relationship between X and Y is inverse. C. remain unchanged so the relationship between X and Y is independent. D. change so the relationship between X and Y is variable.