Using the Information in Exhibit 5-4, Which of the Following

question 129

Multiple Choice

Using the information in Exhibit 5-4, which of the following combinations is preferred to 3 apples and 2 cans of cola?

• A)4 apples and 1 can of cola
• B)3 apples and 2 cans of cola
• C)1 apple and 4 cans of cola
• D)2 apples and 3 cans of cola
• E)2 apples and 2 cans of cola

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Definitions:

Price Range

The difference between the lowest and highest prices within a given market.

Price Inelastic

Refers to a condition where the demand for a good does not significantly change with a change in its price.

Bumper Crop

An exceptionally large harvest of crops in a given season, often beyond what was expected, typically resulting in decreased prices due to increased supply.

Farm Revenues

The total income received by a farm from the sale of its products and services.