Increased productivity in the agricultural sector is not always a benefit to farmers because it is accompanied by
A) lower prices and if demand is inelastic, lower prices mean lower revenues.
B) higher prices and if demand is elastic, higher prices mean lower revenues.
C) lower prices and if demand is elastic, lower prices mean lower revenues.
D) higher prices and if demand is inelastic, higher prices mean lower revenues.
A
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Venture capital firms attempt to overcome the principal-agent problem by
A) investing only in industries with high profit rates. B) charging high interest rates on loans. C) holding large equity stakes in the firms they invest in. D) avoiding investing in common stock.
If the slope of a demand curve is constant, then we know that
A) elasticity of demand is also elastic everywhere. B) elasticity of demand is constant and elastic. C) elasticity of demand is inelastic everywhere. D) elasticity of demand varies along the demand curve.