The following question are based on the following graph. The curves D and S represent the market demand and supply curves for farm products in 1960. The curves D₁ and S₁ represent the market demand and supply curves for farm products in 2000. It is supposed that there were no support programs in either year.

-The relative insensitivity of the supply curve to price can best be explained by the fact that
A) the quantity of food demanded does not vary much with the price of food because food is a necessity.
B) consumption of food per capita faces natural limits and hence responds by only a small amount to changes in per capita income.
C) farmers have only limited control over their outputs in the short run.
D) there has been rapid technological change in agriculture.
E) poor climatological conditions led to decreasing harvests.

Question

The following question are based on the following graph. The curves D and S represent the market demand and supply curves for farm products in 1960. The curves D₁ and S₁ represent the market demand and supply curves for farm products in 2000. It is supposed that there were no support programs in either year.
 
-The relative insensitivity of the supply curve to price can best be explained by the fact that
A) the quantity of food demanded does not vary much with the price of food because food is a necessity. 
B) consumption of food per capita faces natural limits and hence responds by only a small amount to changes in per capita income. 
C) farmers have only limited control over their outputs in the short run. 
D) there has been rapid technological change in agriculture. 
E) poor climatological conditions led to decreasing harvests.

Quizplus · Accepted Answer

The insensitivity of the supply curve to price can be explained by the fact that farmers have only limited control over their outputs in the short run. This means that it is difficult for them to quickly increase or decrease their production in response to changes in price. Factors such as weather, soil conditions, and available labor can all impact how much farmers are able to produce.

The Following Question Are Based on the Following Graph