Because the Demand for Food Is Relatively Price Inelastic, What

question 181

Multiple Choice

Because the demand for food is relatively price inelastic, what effects would you expect to see as a result of technological advances that reduce the cost of food production?

• A)Food prices would rise, but farm incomes would decline.
• B)Food prices would rise and farm incomes would rise.
• C)Food prices would decline and farm incomes would decline.
• D)Food prices would decline, but farm incomes would rise.

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Definitions:

Athlete's Foot

A fungal infection that affects the skin on the feet, known medically as tinea pedis, commonly occurring in environments that are moist and warm.

Tinea Pedis

A fungal infection of the skin on the feet, commonly known as athlete's foot.

Papillomavirus

A type of virus responsible for causing papillomas, such as warts, and some types of cancer, notably cervical cancer, through infection of epithelial cells.

Critical Thinking

The objective analysis and evaluation of an issue to form a judgment, especially valuable in clinical decision-making processes in healthcare.