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If the Demand Curve for Agricultural Products Is Elastic and Farmers

Question 1

Multiple Choice

If the demand curve for agricultural products is elastic and farmers as a group become more productive,then prices of agricultural goods will __________ and total revenue earned by farmers will __________.


A) decrease;increase
B) decrease;decrease
C) increase;increase
D) increase;decrease
E) We cannot answer this question without knowing how elastic the demand curve is.

Correct Answer:

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