If Demand for Farm Crops Is Inelastic,a Good Harvest Will

question 98

Multiple Choice

If demand for farm crops is inelastic,a good harvest will cause farm revenues to:

• A) increase because of the increase in the quantity that farmers can sell.
• B) increase because of a downward movement along the supply curve,encouraging an increase in demand.
• C) decrease because of a percentage fall in price greater than the percentage increase in quantity sold.
• D) remain unchanged because the increase in quantity that can be sold will be matched by an equal decrease in price.

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Definitions:

Restricting Payment

Implies conditions or limitations placed on the distribution or release of funds.

Special Indorsement

A signature on a negotiable instrument, such as a check, that specifies the person to whom the instrument is to be payable, thereby restricting further transfer.

Pay to the Order

A phrase written on checks or drafts instructing the financial institution to pay the specified amount to the individual or entity named.

Trust

A fiduciary relationship in which one party, known as the trustee, holds property on behalf of another party, known as the beneficiary.