Multiple Choice
The price of wheat has fallen since 1950.Which of the following explains this price decline?
A) The price elasticity of demand is less than 1 (in absolute value) and the income elasticity of demand for wheat is low.
B) The price elasticity of demand is greater than 1 (in absolute value) and the income elasticity of demand for wheat is low.
C) The price elasticity of demand is less than 1 (in absolute value) and wheat is an inferior good.
D) The price elasticity of demand is greater than 1 (in absolute value) and the income elasticity of demand for wheat is greater than 1.
Correct Answer:
Verified
Correct Answer:
Verified
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