Increases in Farm Productivity Have Lowered the Prices of Many

question 130

Multiple Choice

Increases in farm productivity have lowered the prices of many agricultural products. Farm revenues decreased, which implies the:

• A) demand for many agricultural products is inelastic.
• B) costs of production increased.
• C) demand for many agricultural products is elastic.
• D) costs of production stayed the same.

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Definitions:

Land Rent

Payment made for the use of land, reflecting its productivity, location, and value form a part of real estate economics.

Future Value

The value of an asset or an amount of money at a specific future date, considering interest or capital gains over time.

Annual Interest

Interest calculated over a 12-month period on the principal sum of a loan or deposit.

Loan Amount

The total sum of money borrowed by an individual or entity from a lender, which is expected to be repaid with interest.