If the demand for a particular agricultural product is highly elastic and bad weather causes the supply to decrease, then we would expect the price of agricultural products to
A) decrease and farmers' revenues to decrease.
B) increase and the demand to decrease.
C) increase while farmers' revenues decrease significantly.
D) increase by a large percentage while farmers' revenues decrease only slightly.
C
You might also like to view...
If the demand for liquor is elastic and the supply of liquor is inelastic, when the government increases liquor tax, _____
a. most of the tax will be paid by the consumer b. most of the tax will be paid by the producer c. all of the tax will be paid by the consumer d. all of the tax will be paid by the producer e. the tax will be paid by the retailer
From the 1960s through the 1990s military expenditures increased as a percentage of GDP and they were a major influence in the continued growth of government outlays
a. True b. False
Which of the following is true?
A. ATC = AVC - AFC B. TVC/Q = TC/Q + TFC/Q C. ?TC/?Q = ?AVC/?Q D. ?TC/?Q = MC
In a recession, the Fed's monetary policy aims to ________ the real interest rate, ________ aggregate demand, and ________ aggregate supply
A) decrease; increase; increase B) decrease; increase; not change C) increase; not change; increase D) increase; increase; increase E) increase; decrease; not change.