In the Farm Households Model,when Transfer Costs Prevent Farm Households

question 16

Multiple Choice

In the Farm households model,when transfer costs prevent farm households from participating in labor markets,what will happen to the supply of agricultural goods with increases in crop prices?

• A) it will increase.
• B) it will decrease.
• C) it will stay the same.
• D) it depends on how cheap the farmers have access to labor markets