Question 1

Which of the following statements is not correct?
A)Advocates for drug-interdiction policies that reduce the supply of illegal drugs argue that the demand for illegal drugs may be more responsive in the long run than in the short run.
B)The demand for illegal drugs is price inelastic.
C)Drug interdiction efforts that reduce the supply of illegal drugs may increase drug-related crimes.
D)The quantity of illegal drugs demanded is very responsive to changes in price.

Accepted Answer

The statement in D is incorrect because it contradicts statement B, which correctly notes that the demand for illegal drugs is price inelastic. Price inelasticity means that the quantity demanded is not very responsive to changes in price, contrary to what is claimed in D.

Question 2

Which of the following statements about agriculture in the United States is correct?
A)From the 1950s to today, agricultural output has approximately doubled.
B)Because technological improvements increase the supply of a product for which demand is inelastic, an individual farmer would be better off not adopting the new technology.
C)Increasing the supply of agricultural products typically benefits consumers but harms farmers as a group.
D)Technological improvements typically increase both supply and revenue for individual farmers.

Accepted Answer

The answer of Which of the following statements about agriculture...

Quiz 5: Elasticity and Its Application

Which of the following statements is not correct?

Which of the following statements about agriculture in the United States is correct?