The Demand for Most Farm Products Is Relatively Inelastic

question 89

Multiple Choice

The demand for most farm products is relatively inelastic. All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases in productivity?

• A) Farm revenues increase.
• B) Farm revenues decrease.
• C) Farm revenues remain constant because consumers will not increase their consumption of farm products by much.
• D) Farm revenues could increase or decrease depending on the cost of this new equipment.

---

Definitions:

Failure

The inability to achieve a desired goal or objective despite effort.

Storming Stage

The second stage of team development characterized by conflict and competition as group members start to express differing opinions and vie for positions.

Cross-functional

Relating to or involving multiple departments or areas of expertise within an organization, aimed at achieving a specific goal.

Empowered Members

Individuals within an organization or team who are given authority, resources, and the capability to make decisions and contribute to the group's objectives.