question archive Demand for vegetables at a small farmers' market is steady, but the supply of vegetables has decreased because of a drought
Demand for vegetables at a small farmers' market is steady, but the supply of vegetables has decreased because of a drought
Subject:EconomicsPrice:2.88 Bought3
Demand for vegetables at a small farmers' market is steady, but the supply of vegetables has decreased because of a drought.
This is good news for farmers if demand is _____ and the _____ effect outweighs the _____ effect.
A. inelastic; output; price
B. elastic; output; price
C. inelastic; price; quantity
D. elastic; price; quantity
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The correct answer is C. inelastic; price; quantity
The demand for vegetables is inelastic as many consumers, for health reasons prefer to eat vegetables and there are no perfect substitutes in the market. On the other hand, the high price of vegetables offset the quantity effect as farmers will still earn profit.
