Refer to the Demand Graph for a Farm Product

question 234

Multiple Choice

Refer to the demand graph for a farm product. Which of the following will cause the largest decrease in farmers' incomes?

• A)a decrease in quantity from Q_c to Qₐ
• B)a decrease in quantity from Qᵦ to Qₐ
• C)an increase in quantity from Qₐ to Q_c
• D)an increase in quantity from Qₐ to Qᵦ

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Definitions:

Good

An item or product that is produced and consumed to satisfy human wants or needs.

Proportional

An attribute of a relationship where changes in one variable are associated with consistent, proportional changes in another variable.

Flat Tax Structure

A tax system with a constant marginal rate, usually applied to individual or corporate income.

Percentage

A ratio or fraction out of 100 that is used to express how large one quantity is relative to another quantity.