The Demand for Most Farm Products Is Relatively Inelastic

question 131

Multiple Choice

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

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Definitions:

WTO

World Trade Organization, an international body that regulates international trade between nations, aiming to ensure that trade flows smoothly and freely.

ILO

The International Labour Organization (ILO) is a United Nations agency that sets international labor standards and promotes rights at work, encouraging decent employment opportunities and enhancing social protection.

National Labor Relations Board

A federal agency in the United States tasked with enforcing US labor law in relation to collective bargaining and unfair labor practices.

Labor Standards

Regulations and practices that relate to working conditions, including aspects like minimum wages, working hours, safety, and rights to organize.