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Homework answers / question archive / Because farm products have a low elasticity of demand a small change in farm output will have A) An indeterminate effect on price B) No effect on price C) A smaller effect on price D) A larger effect on price
Because farm products have a low elasticity of demand a small change in farm output will have
A) An indeterminate effect on price
B) No effect on price
C) A smaller effect on price
D) A larger effect on price
D) A larger effect on the price
Due to low elasticity of demand for agricultural products, a small change in farm supply will result in a larger impact on the price. On the graph below, a fluctuation in farm output from Qe to Q1 causes a larger change in price, Pe to P1.
please see the attached file for the complete solution
