The Relative Price Inelasticity of Demand for Agricultural Products Has

question 17

Multiple Choice

The relative price inelasticity of demand for agricultural products has resulted in

• A)prices fluctuating more in agriculture than in other industries.
• B)prices fluctuating less in agriculture than in other industries.
• C)higher prices for agricultural products.
• D)lower prices for agricultural products.

---

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, a measure of producers' benefit.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good or service.

Total Revenue

The total amount of money a firm receives from the sale of its goods and services, calculated as the price per unit times the number of units sold.

Marginal Cost

The cost of producing one additional unit of a good or service, representing the increase in total cost from an increase in production by one unit.