Figure 2.1 -Referring to Figure 2.1,if You Increase the Production of Farm

question 50

Multiple Choice

Figure 2.1

-Referring to Figure 2.1,if you increase the production of farm goods, what other area is affected?

• A) the price of produce
• B) the production of manufactured goods
• C) how much people can purchase
• D) the wages earned by farm workers

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Definitions:

Price Elastic

refers to the responsiveness of the quantity demanded of a good or service to a change in its price.

Per-Unit Tax

A tax imposed on a product based on the number of units purchased, not the value of the purchase.

Buyers

Individuals or entities that exchange money for goods and services.

Sellers

Individuals or entities that offer goods or services to buyers in exchange for payment.