Since 1950, There Has Been a Substantial Increase in Wheat

question 107

Multiple Choice

Since 1950, there has been a substantial increase in wheat production.The increase in production has led to a decrease in the price of wheat because of which of the following factors?

• A)The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is greater than 1.
• B)The absolute value of the price elasticity of demand for wheat is greater than 1 and wheat is a close substitute for other food products.
• C)The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is low.
• D)The income elasticity of demand for wheat is high and wheat is an inferior good.

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Definitions:

Actual Value

The real, measured value of an object, property, or financial instrument, as opposed to its estimated or anticipated value.

Variable Allowances

Adjustments in time estimates or costs to accommodate changes in work conditions or processes.

Normal Time

The standard duration that a task or activity is expected to take under normal working conditions.

Actual Average Time

The real measured time taken on average to perform a task or process, used in evaluating and planning efficiencies.