An Advance in Farm Technology That Results in an Increased

question 46

Multiple Choice

An advance in farm technology that results in an increased market supply is

• A)good for farmers because it raises prices for their products but bad for consumers because it raises prices consumers pay for food.
• B)bad for farmers because total revenue will fall but good for consumers because prices for food will fall.
• C)good for farmers because it raises prices for their products and also good for consumers because more output is available for consumption.
• D)bad for farmers because total revenue will fall and bad for consumers because farmers will raise the price of food to increase their total revenue.

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Definitions:

Indifference Curve

A graphical representation of different combinations of two goods or services among which a consumer is indifferent, showing preferences of consumption.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to the behavior observed with normal goods.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases, all else being constant.

Income

The financial gain received by an individual or a business in return for providing a good or service or through investing capital, typically measured over a set period of time.