For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [SelectMultiple]Group of answer choicesDue to profit effect, their utility as producers increases.The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect.Their is no effect since subsistence households never sell or buy their staple production.Due to price effect, their utility as consumers decreases.

Consumer theory studies the behaviors of consumers, how consumer spends their limited income given…

Answered: For a subsistence agricultural…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [Select
Multiple]

Group of answer choices

Due to profit effect, their utility as producers increases.
The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect.
Their is no effect since subsistence households never sell or buy their staple production.
Due to price effect, their utility as consumers decreases.

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