Asked by Massiel Toribio Peralta on Jul 14, 2024
Verified
With a fixed level of farm production, a given shift in demand for a crop will cause a
A) small price change if demand is quite inelastic.
B) more dramatic price change if demand is quite elastic.
C) more dramatic price change if demand is quite inelastic.
D) similar amount of price change regardless of whether demand is elastic or not.
Demand Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating consumers' sensitivity to price changes.
Farm Production
The process and output involved in the cultivation of crops and the rearing of livestock for economic purposes.
- Gain insight into the factors influencing farm incomes and the price stability of agricultural products.
Verified Answer
IB
Ishiyihmie BurrellJul 15, 2024
Final Answer :
C
Explanation :
When demand is quite inelastic, a given shift in demand leads to a more dramatic price change because consumers are less responsive to price changes, meaning they will not significantly alter their buying habits in response to a price increase or decrease. This results in larger price adjustments to bring the market back to equilibrium.
Learning Objectives
- Gain insight into the factors influencing farm incomes and the price stability of agricultural products.
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