A New Per Unit Subsidy for Almond Production in the United

question 7

Multiple Choice

A new per unit subsidy for almond production in the United States increases the world supply of almonds. If almonds are inelastically demanded, what will happen to total revenues from almond production?

• A) They will rise.
• B) They will fall.
• C) They will remain the same.
• D) They will change in an indeterminate direction.

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Definitions:

Forest Communities

Ecosystems composed of trees and other plant species, along with associated animals, microorganisms, and the physical environment, interacting as a unit.

Succession

The process by which ecosystems change and develop over time, often following a disturbance.

Climate

Average weather conditions, plus extremes (records), that occur in a given place over a period of years.

Species Richness

The number of different species represented in an ecological community, landscape or region.