Supply of a food item increases by more than the demand for the food item increases. One thing for certain is that
A) the price of the food item rises.
B) income elasticity of demand is less than 0.
C) the supply curve is price inelastic.
D) real income falls as a result.
E) none of the above
E
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"When a company's depreciation is larger than its gross investment, net investment becomes negative and the firm's capital stock decreases." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
When differences in land quality and access to marketplaces are very large and population grows rapidly, the conditions are ripe for
a. increasing differential and location rents b. decreasing differential and location rents c. decreasing differential rents and increasing location rents d. increasing differential rents and decreasing location rents e. marginal physical product of land to increase