The following question are based on the following graph. The curves D and S represent the market demand and supply curves for farm products in 1960. The curves D₁ and S₁ represent the market demand and supply curves for farm products in 2000. It is supposed that there were no support programs in either year.

-The steepness of the two demand curves can best be explained by the fact that
A) the quantity of food demanded does not vary much with the price of food because food is a necessity.
B) the consumption of food per capita faces natural limits and hence responds by only a small amount to changes in per capita income.
C) farmers have only limited control over their outputs.
D) there has been rapid technological change in agriculture.
E) poor farmers have been slow to leave the farming industry.

Question

The following question are based on the following graph. The curves D and S represent the market demand and supply curves for farm products in 1960. The curves D₁ and S₁ represent the market demand and supply curves for farm products in 2000. It is supposed that there were no support programs in either year.
 
-The steepness of the two demand curves can best be explained by the fact that
A) the quantity of food demanded does not vary much with the price of food because food is a necessity. 
B) the consumption of food per capita faces natural limits and hence responds by only a small amount to changes in per capita income. 
C) farmers have only limited control over their outputs. 
D) there has been rapid technological change in agriculture. 
E) poor farmers have been slow to leave the farming industry.

Quizplus · Accepted Answer

The steepness of the two demand curves can be explained by the fact that food is a necessity and hence the quantity of food demanded does not vary much with the price of food. This is supported by the fact that the demand curves are relatively steep, indicating a large change in price is required to bring about a small change in the quantity of food demanded.

The Following Question Are Based on the Following Graph