Asked by Dhabole Sharavanin on Jul 14, 2024
Verified
Over time, technological change has
A) reduced both the price elasticity and income elasticity of the demand for farm products.
B) reduced the minimum efficient scale of production in agriculture and increased the prices of farm products.
C) increased both price elasticity and income elasticity of the demand for farm products.
D) increased the minimum efficient scale of production in agriculture and reduced the prices of farm products.
Technological Change
Refers to advancements or improvements in technology, which can lead to increased efficiency and productivity in various sectors.
Price Elasticity
The extent to which demand for an item varies with a shift in its cost.
Income Elasticity
An indicator of the variation in demand for a product based on alterations in consumer income.
- Examine the effects of technological changes on agriculture.
Verified Answer
SH
sanna hassanJul 19, 2024
Final Answer :
D
Explanation :
Technological change in agriculture has led to an increase in the minimum efficient scale of production, meaning that larger operations are more cost-effective due to advancements in machinery and farming techniques. This has contributed to a reduction in the prices of farm products, as larger scale operations can produce goods more efficiently and at lower costs.
Learning Objectives
- Examine the effects of technological changes on agriculture.