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If the Price Elasticity of Demand for Farm Products Is

question 68

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If the price elasticity of demand for farm products is low,abrupt changes in farm output will have a limited effect on prices.


Definitions:

Tariff

A tax levied on imports.

Domestic Price

The price of goods or services within a country's borders, as opposed to international or global prices.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the total amount they actually pay for a good or service.

Beef Consumption

The amount of beef eaten by individuals or populations within a certain timeframe.

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