The nation's farm problem follows from
A) a price inelastic demand curve for farm goods coupled with changes in the supply curve, leading to great variations in price.
B) market demand curves derived by summing across individual demand curves.
C) the lack of good substitutes creating price elastic demand curves.
D) shifts in the demand curve that are greater than shifts in the supply curve over time.
E) too few farmers to permit the efficient operation of free markets.

Question

Quizplus · Accepted Answer

The farm problem is primarily due to a price inelastic demand curve for farm goods coupled with changes in the supply curve, leading to great variations in price. This means that even if there is a large change in price, the quantity demanded or supplied does not change significantly. This can result in either surpluses or shortages, leading to instability in the agricultural sector.

The Nation's Farm Problem Follows from