QuestionJuly 20, 2025

The rate of growth in GDP affects agriculture A Has a minimal effect on agriculture because more consumers eat away from home. B Has a major effect on agriculture because people need to eat. C Has a minimal effect on agriculture because of the low income elasticity for agricultural products. D Has a major effect on agriculture because of the high income elasticity for agricultural products.

The rate of growth in GDP affects agriculture A Has a minimal effect on agriculture because more consumers eat away from home. B Has a major effect on agriculture because people need to eat. C Has a minimal effect on agriculture because of the low income elasticity for agricultural products. D Has a major effect on agriculture because of the high income elasticity for agricultural products.
The rate of growth in GDP affects agriculture
A Has a minimal effect on agriculture because more consumers eat away from home.
B Has a major effect on agriculture because people need to eat.
C Has a minimal effect on agriculture because of the low income elasticity for agricultural products.
D Has a major effect on agriculture because of the high income elasticity for agricultural products.

Solution
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Answer

C Has a minimal effect on agriculture because of the low income elasticity for agricultural products. Explanation 1. Analyze Income Elasticity Income elasticity measures how demand changes with income. Agricultural products typically have low income elasticity, meaning demand doesn't increase significantly as income rises. 2. Evaluate Options Based on Elasticity Option C states minimal effect due to low income elasticity, aligning with the typical behavior of agricultural product demand.

Explanation

1. Analyze Income Elasticity<br /> Income elasticity measures how demand changes with income. Agricultural products typically have low income elasticity, meaning demand doesn't increase significantly as income rises.<br /><br />2. Evaluate Options Based on Elasticity<br /> Option C states minimal effect due to low income elasticity, aligning with the typical behavior of agricultural product demand.
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