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.
. 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.
2 answers
its A
0 answers