The Following Question Are Based on the Following Graph

question 68

Multiple Choice

The following question are based on the following graph. The curves D and S represent the market demand and supply curves for farm products in 1960. The curves D₁ and S₁ represent the market demand and supply curves for farm products in 2000. It is supposed that there were no support programs in either year.

-The steepness of the two demand curves can best be explained by the fact that

• A) the quantity of food demanded does not vary much with the price of food because food is a necessity.
• B) the consumption of food per capita faces natural limits and hence responds by only a small amount to changes in per capita income.
• C) farmers have only limited control over their outputs.
• D) there has been rapid technological change in agriculture.
• E) poor farmers have been slow to leave the farming industry.

---

Definitions:

Inclusion

The practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized.

Monopsonist

A market condition where there is only one buyer for a particular product or service, giving the buyer significant control over prices.

Labor Market

The supply and demand for workers, in which employers seek to hire labor and workers find employment. The labor market dynamics influence wages and employment levels.

Monopsonist

A market condition where there is only one buyer for many suppliers, giving the buyer substantial control over prices and terms.