Top Posters
Since Sunday
T
3
s
3
o
3
G
3
k
3
C
3
a
3
K
3
f
3
j
3
b
3
c
3
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
achalmers achalmers
wrote...
Go to Answer
Posts: 459
Rep: 13 0
5 years ago

Question 1.

The demand for most farm products is relatively inelastic. All else constant, what is the effect on farm revenues as a result of the introduction of new and better farm equipment which increases productivity?

• Farm revenues increase.

• Farm revenues decrease.

• Farm revenues remain constant because consumers will not increase their consumption of farm products by much.

• Farm revenues could increase or decrease depending on the cost of this new equipment.

Question 2.

Suppose a frost destroys the tomato crop in California but farmers see an increase in their revenues. Which of the following best explains this?

• The decrease in supply led to huge price increases.

• Tomatoes are necessities.

• The demand for tomatoes is price inelastic.

• The cross-price elasticity between tomatoes and most other substitute vegetables is very low.
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
Read 48 times
2 Replies
Replies
Answer verified by a subject expert
GuestGuest
wrote...
#1
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

achalmers Author
wrote...
#2
5 years ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  980 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 5087
  
 905
  
 4142
Your Opinion
Who will win the 2024 president election?
Votes: 45
Closes: November 4
Previous poll results: Should Ph.D.'s be addressed as doctors?