Which of the following statements is true?
A)There are more farms today than at the beginning of the 20th century.
B)An individual farmer prefers good weather to bad weather,but farmers as a group may prefer bad weather to good weather,especially if the demand for their products is inelastic.
C)Income elasticity of demand measures the responsiveness of a change in quantity supplied to changes in income.
D)a and b
E)b and c

Question

Quizplus · Accepted Answer

Option A is false as there are less farms today than at the beginning of the 20th century. Option C is incorrect as income elasticity of demand measures the responsiveness of quantity demanded to changes in income, not quantity supplied. Option D is false as option A is incorrect. Option E is false as option C is incorrect. Therefore, option B is the only true statement. Farmers may prefer bad weather if the demand for their products is inelastic because the decrease in supply caused by the bad weather can lead to an increase in the price of their products, resulting in higher revenue for the farmers.

Which of the Following Statements Is True