Since 1950, There Has Been a Substantial Increase in Wheat

question 107

Multiple Choice

Since 1950, there has been a substantial increase in wheat production.The increase in production has led to a decrease in the price of wheat because of which of the following factors?

• A)The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is greater than 1.
• B)The absolute value of the price elasticity of demand for wheat is greater than 1 and wheat is a close substitute for other food products.
• C)The absolute value of the price elasticity of demand for wheat is less than 1 and the income elasticity of demand for wheat is low.
• D)The income elasticity of demand for wheat is high and wheat is an inferior good.

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Definitions:

Numerical Indexes

Measures or indicators that are expressed as numbers, often used to compare and analyze data.

Mean

The arithmetic average of a set of values, calculated by summing the values and then dividing by the number of values.

Distribution

In statistics, the way in which values of a variable are spread or dispersed across a set of data.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean.