If the prices received by farmers increased and the prices paid by farmers also increased,the parity ratio:

A) will necessarily be unchanged.
B) may either increase or decrease.
C) will necessarily increase.
D) will necessarily decline.

The parity ratio is a measure comparing the prices farmers receive for their products with the prices they pay for goods and services. If both the prices received and paid by farmers increase, the effect on the parity ratio depends on the relative rates of these changes. If the prices received increase more than the prices paid, the parity ratio increases, and vice versa.