If Demand for Farm Crops Is Inelastic, a Good Harvest

question 62

Multiple Choice

If demand for farm crops is inelastic, a good harvest will cause farm revenues to

• A) increase because of the increase in the quantity that farmers can sell.
• B) increase because of a downward movement along the supply curve, encouraging an increase in demand.
• C) decrease because of a percentage fall in price that is greater than the percentage increase in quantity sold.
• D) remain unchanged, because the increase in quantity that can be sold will be matched by an equal decrease in price.

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Definitions:

Confidence Coefficient

The confidence level expressed as a decimal value. For example, .95 is the confidence coefficient for a 95% confidence level.

Average Yearly Salaries

The mean amount of money earned by employees in a specific job or industry over the course of a year.

Top Managers

The highest level of management in an organization, responsible for setting strategic goals and making overarching decisions.

Private Organizations

Non-governmental organizations typically driven by individual or group interests, often focused on business, education, or social issues.