logo
Ask Question

Asked by Tatiana Cortes on Jul 12, 2024

verifed

Verified

An extraordinarily small crop of farm products due to drought causes

A) a large increase in the price of farm products because the demand for farm products is price inelastic.
B) only a slight increase in the price of farm products because the demand for farm products is income elastic.
C) only a slight increase in the price of farm products because the demand for farm products is income inelastic.
D) a large increase in the price of farm products because the demand for farm products is price elastic.

Small Crop

A small crop refers to a lesser yield of agricultural produce than usual, often due to factors like weather conditions, pest infestations, or reduced acreage.

Drought

A prolonged period of abnormally low rainfall, leading to a shortage of water.

Price Inelastic

A condition where the quantity demanded of a good or service is relatively unaffected by changes in its price.

  • Learn about the adaptability of demand in the farming sector and its influence on prices and farm revenues.
verifed

Verified Answer

MG
Minta GraceJul 17, 2024
Final Answer :
A
Explanation :
The demand for farm products is generally price inelastic, meaning that consumers' demand does not change significantly with price changes. Therefore, a significantly smaller crop due to drought would lead to a large increase in prices, as the supply decreases but demand remains relatively constant.

Related questions

One Consequence of the Long-Run Problem Faced by Farms Has ...

Which of the Following Statements Is Correct ...

If the Demand for an Agricultural Product Is Inelastic, a ...

Which of the Following Statements Best Describes the Demand for ...

Because the Demand for Agricultural Products Is Highly Price Inelastic ...