Which of the Following Best Describes the Main Problem Faced

Multiple Choice

Which of the following best describes the main problem faced by farms in the long run?

A) Lagging technology has decreased the productivity of farmers and therefore resulted in low farm prices and incomes.
B) The highly inelastic nature of agricultural demand has caused small year-to-year fluctuations in farm output to result in highly unstable farm incomes.
C) The supply of farm products has increased relative to the demand for them, and, because demand is inelastic, farm prices and incomes have therefore declined.
D) The demand for farm products has increased relative to their supply, but the highly elastic nature of agricultural demand has caused these shifts to result in declining farm incomes.