Many governments around the world attempt to improve the incomes of commodity producers by taking steps to increase the commodity price in the domestic market
Although this may reduce quantity demanded for the product, the action may be effective because: A) commodity supply tends to be inelastic, so quantity does not decline by much.
B) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities.
C) commodity demand tends to be inelastic, so higher prices generate higher sales revenue.
D) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities.
C
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The market mechanism satisfies all consumer desires and maximizes business profits.
Answer the following statement true (T) or false (F)
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher