The Demand for Most Farm Products Is Relatively Inelastic

question 16

Multiple Choice

The demand for most farm products is relatively inelastic.All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases productivity?

• A)Farm revenues increase.
• B)Farm revenues decrease.
• C)Farm revenues remain constant because consumers will not increase their consumption of farm products by much.
• D)Farm revenues could increase or decrease depending on the cost of this new equipment.

---

Definitions:

Consistency

The state of being coherent and uniform in thoughts, beliefs, or actions over time.

External Factor

An external factor refers to influences from the external environment that impact individuals or organizations, often beyond their control.

Fusiform Face Area

A region in the temporal lobe of the brain that helps us recognize the people we know.

Prosopagnosia

The inability to recognize familiar faces.