The Price Elasticity of Demand for an Agricultural Product Is

question 76

Multiple Choice

The price elasticity of demand for an agricultural product is 0.4. This value means that, when the quantity decreases 1 per cent, the price

• A) rises 4 per cent.
• B) falls 2.5 per cent.
• C) rises 2.5 per cent.
• D) rises 0.25 per cent.
• E) falls 4 per cent.

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Definitions:

Financial Account Items

Components of the financial account in the balance of payments, representing transactions that involve financial assets and liabilities across borders.

Export-Type Entries

The processes or strategies involved in entering foreign markets by selling goods or services produced in one's home country.

Balance of Trade

The difference in value between a country's imports and exports over a certain period, reflecting the country's external trading position.