Which of the Following Statements About U

question 97

Multiple Choice

Which of the following statements about U.S. agriculture is true as it relates to the past several decades?

• A)The demand for farm products has declined, the supply of farm products has increased, and the price of farm products has declined.
• B)The demand for farm products has become both more income elastic and more price elastic.
• C)Minimum efficient scale has increased, the prices of farm products have declined, and the number of farms has declined.
• D)The prices of farm products have increased, minimum efficient scale has declined, and the supply of farm products has been stagnant.

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Definitions:

Perfectly Inelastic

A situation in demand or supply in which the quantity demanded or supplied does not change regardless of changes in price.

Quantity Demanded

The specific amount of a good or service consumers are willing to purchase at a given price.

Price Changes

Variations in the cost of goods and services over time in the market.

Price Elasticity

A measure of the sensitivity of demand for a product relative to changes in its price.