A bumper crop of apples can lead to sharply lower market prices and a decline in earned farm income primarily because
A. The income elasticity of demand for apples is negative.
B. Foreign exports of apples to the United States should increase.
C. The demand curve faced by individual apple farmers is price-inelastic.
D. The demand for apples is price-inelastic.
Answer: D
You might also like to view...
The distinction between real and nominal shocks is that
A) real shocks directly affect only the IS curve, but not the FE line or LM curve. B) real shocks directly affect only the FE line, but not the LM curve. C) real shocks directly affect only the IS curve or the FE line, but not the LM curve. D) real shocks have a large direct effect on the IS curve and the FE line, but only a small direct effect on the LM curve.
Global warming of the past century, and especially in the past decade, is at least partly a consequence of human activities that have increased ____ in the atmosphere
a. smog b. PCBs c. ozone d. "greenhouse gases"
The demand for a specific brand of corn flakes cereal is likely to be:
A. less price elastic, because the specific brand is a unique product. B. very price elastic, because there are many close substitutes available. C. very price elastic, because that specific brand is a unique product. D. less price elastic, because there are many close substitutes available.
Private ownership of rivers and lakes will halt all water pollution.
Answer the following statement true (T) or false (F)