Because farm products have a low elasticity of demand, a small change in output will have
A. An indeterminate effect on price.
B. A smaller effect on price.
C. A larger effect on price.
D. No effect on price.
Answer: C
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An ad valorem tax:
A. is a fixed dollar amount that must be paid on each unit bought or sold. B. is a tax that is stated as a percentage of the good's price. C. is a tax that is stated as a percentage of the good's price, which increases as quantity bought increases. D. is a tax that is only paid by producers.
If Q represents a firm's level of output, W represents the wage paid to labor (L) and R is the cost of capital (K), then which of the following represents the firm's isocost line?
A. C = FC + VC(Q) B. C = FC(Q) + VC(Q) C. C = WL + RK D. C = (W + R)Q
Which of the following statements is true?
A. There are more attainable points than unattainable points in every PPF diagram. B. If scarcity did not exist, neither would a PPF. C. All PPFs are downward-sloping straight lines D. The concept of opportunity costs cannot be illustrated within a PPF framework.
The duration of unemployment tends to
A. increase when business activity decreases. B. increase when the labor force shrinks. C. stay consistently the same over long periods of time. D. increase when employment increases.