Refer to the information provided in Figure 8.6 below to answer the question(s) that follow.  Figure 8.6 Refer to Figure 8.6. Outdoor Equipment?s ________ are minimized at the output level where curves 1 and 3 intersect.

A price ceiling set below the equilibrium price causes a shortage in the market

a. True b. False Indicate whether the statement is true or false

Farmers often find that large bumper crops are associated with declines in their gross incomes. This suggests that:

A. farm products are normal goods. B. farm products are inferior goods. C. the price elasticity of demand for farm products is less than 1. D. the price elasticity of demand for farm products is greater than 1.