In the Immediate Market Period for a Highly Perishable Crop

question 65

Multiple Choice

In the immediate market period for a highly perishable crop like tomatoes, the individual farmer's supply curve tends to be

• A)perfectly inelastic.
• B)perfectly elastic.
• C)quite flat.
• D)downward-sloping.

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Definitions:

Excess Quantity

A situation where the supply of a product exceeds the demand for it.

Consumer Surplus

is the difference between the total amount that consumers are willing to pay for a good or service and the total amount that they actually pay.

Market Price

The immediate rate at which an asset or service can be traded in a specific trading place.

Producer Surplus

The gap between what sellers are prepared to accept for a product or service and the real amount they end up getting.