Over Time, Technological Change Has

question 178

Multiple Choice

Over time, technological change has

• A) reduced both the price elasticity and income elasticity of the demand for farm products.
• B) reduced the minimum efficient scale of production in agriculture and increased the prices of farm products.
• C) increased both price elasticity and income elasticity of the demand for farm products.
• D) increased the minimum efficient scale of production in agriculture and reduced the prices of farm products.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a particular time frame.

Option Contract

A financial contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specific date.

Exercise Price

The set price at which an option's owner has the right to purchase (for a call option) or sell (for a put option) the underlying asset or commodity.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.