Asked by
Krupa Patel
on Oct 08, 2024
Verified
If the demand for wheat is highly price inelastic,an extraordinarily large crop may reduce farm incomes.
Price Inelastic
Describes a situation where the demand for a good is not significantly affected by changes in its price.
Farm Incomes
The earnings generated from the operation of a farm, including profits from selling agricultural products.
- Comprehend the principle of demand price elasticity and its consequences for overall income.
- Identify the relationship between the elasticity of demand and the nature of goods (necessities vs. luxury goods).
Verified Answer
YG
Learning Objectives
- Comprehend the principle of demand price elasticity and its consequences for overall income.
- Identify the relationship between the elasticity of demand and the nature of goods (necessities vs. luxury goods).