Because the Demand for Agricultural Products Is Highly Price Inelastic

Multiple Choice

Because the demand for agricultural products is highly price inelastic, a modest increase in supply will cause

A) relatively large declines in farm prices and incomes.
B) relatively large increases in farm prices and incomes.
C) a small decline in farm prices, but an increase in farm incomes.
D) a large decline in farm prices, but an increase in farm incomes.