Table 3-1 -Refer to Table 3-1. How Could the Farmer and Rancher

question 155

Multiple Choice

Table 3-1

-Refer to Table 3-1. How could the Farmer and Rancher both benefit?

• A)By the Farmer specializing in meat and the Rancher specializing in potatoes.
• B)By the Farmer specializing in potatoes and the Rancher specializing in meat.
• C)By the Farmer specializing in neither good and the Rancher specializing in both goods.
• D)They cannot benefit by specialization and trade.

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Definitions:

Short Run

A period in economics during which the quantity of at least one input (such as plant size) is fixed and cannot be changed.

Long Run

A period in economics sufficient for all markets to adjust to equilibrium, including the adjustment of all production factors and prices of inputs.

Cross-Price Elasticity

A measure of how the demand for one good changes in response to a change in the price of another good.

Substitutes

Products or services that can be used in place of one another; when the price of one increases, the demand for the other may increase as consumers switch to the cheaper option.