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.

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Definitions:

Structural Barriers

refer to obstacles within societal, institutional, or economic systems that impede individuals or groups from accessing opportunities or resources.

Social Introduction

The process by which individuals are formally or informally introduced and integrated into social groups, networks, or institutions.

Education Institution

Organizations dedicated to providing educational services, ranging from schools and colleges to universities.

Transmission

The act or process of sending or conveying something from one place, person, or thing to another, whether it be information, disease, or energy.