7. Which of the following statements is (are) correct? (x) Suppose technological improvements in agriculture production are developed. As farmers use the new technology the supply curve of agricultural commodities will shift to the right and this tends to decrease total revenue to farmers, as a whole, because the demand for food is relatively inelastic. (y) A government program that reduces land under cultivation and decreases the supply of agricultural products can help both farmers and consumers because of the decrease in price of those products. (z) While a reduction in total agricultural production may benefit farmers as a group, it will benefit an individual farmer to increase his production if other farmers do not. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only
7. Which of the following statements is (are) correct? (x) Suppose technological improvements in agriculture production are developed. As farmers use the new technology the supply curve of agricultural commodities will shift to the right and this tends to decrease total revenue to farmers, as a whole, because the demand for food is relatively inelastic. (y) A government program that reduces land under cultivation and decreases the supply of agricultural products can help both farmers and consumers because of the decrease in price of those products. (z) While a reduction in total agricultural production may benefit farmers as a group, it will benefit an individual farmer to increase his production if other farmers do not. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (z) only
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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