Which of the following statements is true?
A) There are more farms today than at the beginning of the 20th century.
B) An individual farmer prefers good weather to bad weather, but farmers as a group may prefer bad weather to good weather, especially if the demand for their products is inelastic.
C) Income elasticity of demand measures the responsiveness of a change in quantity supplied to changes in income.
D) a and b
E) b and c
B
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Which of the following varies along a given demand curve?
a. consumer preferences b. prices of substitutes c. prices of complements d. the price of the good itself e. income
Which of the following is true?
A) A firm's accounting profit is equal to its economic profit. B) Opportunity costs are the same as explicit costs. C) A firm's net income is the same as its accounting profit. D) If a firm's accounting profits are positive, its economic profits must also be positive.