The Price of Wheat Has Fallen Since 1950

question 243

Multiple Choice

The price of wheat has fallen since 1950.Which of the following explains this price decline?

• A)The price elasticity of demand is less than 1 (in absolute value)and the income elasticity of demand for wheat is low.
• B)The price elasticity of demand is greater than 1 (in absolute value)and the income elasticity of demand for wheat is low.
• C)The price elasticity of demand is less than 1 (in absolute value)and wheat is an inferior good.
• D)The price elasticity of demand is greater than 1 (in absolute value)and the income elasticity of demand for wheat is greater than 1.

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