Post a New Question

Economics

posted by on .

. A bumper crop of farm products causes:
A. only a slight decline in the price of farm products because the demand for farm products is income inelastic.
B. a large decline in the price of farm products because the demand for farm products is price inelastic.
C. only a slight decline in the price of farm products because the demand for farm products is income elastic.
D. a large decline in the price of farm products because the demand for farm products is price elastic.

  • Economics - ,

    Take a shot, what do you think?
    Hint: draw supply and demand graphs, compare a graphs where demand is highly elastic (almost flat) vs highly inelastic (almost vertical)
    Hint: question has nothing do do with the incomes of consumers; eliminate C.

  • Economics - ,

    its A

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question