The demand for agricultural products:
A. has a price elasticity coefficient of about 0.20 to 0.25.
B. is elastic with respect to income but inelastic with respect to price.
C. has been decreasing about 8 percent per year.
D. has been rising more rapidly than the national income.
Answer: A
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Government regulations that worsen the performance of financial institutions include:
a. interest rate ceilings b. reserving a minimum portion of loans for rural borrowers c. a high percentage of deposits kept in reserve d. subsidies for low-income borrowers e. all of the above
In the above figure, which of the following statements is FALSE if the firm is operating at output level Q2?
A) The output is equivalent to an unregulated monopolist. B) Economic profits are positive. C) The price is lower than at an equivalent firm forced by regulators to charge ATC pricing. D) Average costs would be lowered by expanding output.