An Extraordinarily Small Crop of Farm Products Due to Drought

question 208

Multiple Choice

An extraordinarily small crop of farm products due to drought causes

• A)a large increase in the price of farm products because the demand for farm products is price inelastic.
• B)only a slight increase in the price of farm products because the demand for farm products is income elastic.
• C)only a slight increase in the price of farm products because the demand for farm products is income inelastic.
• D)a large increase in the price of farm products because the demand for farm products is price elastic.

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