The demand for most farm products is relatively inelastic. All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases productivity?
A) Farm revenues could increase or decrease depending on the cost of this new equipment.
B) Farm revenues remain constant because consumers will not increase their consumption of farm products by much.
C) Farm revenues increase.
D) Farm revenues decrease.
D
Economics
You might also like to view...
Crowding out occurs because expansionary fiscal policy:
A) appreciates the exchange rate. B) lowers foreign income. C) lowers the interest rate. D) increases net exports.
Economics
A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is
A) less than 70 units. B) between 70 and 120 units. C) between 120 and 170 units. D) more than 170 units.
Economics