An increase in demand for U.S.farm exports will ________ the market prices for these exports and ________ economic profit in these markets.

Question

Quizplus · Accepted Answer

An increase in demand for U.S. farm exports will generally lead to higher market prices for these exports because the greater demand will push prices up as buyers are willing to pay more to secure the goods they want. Additionally, the increase in prices typically leads to an increase in economic profit for producers in these markets because they are receiving more revenue for their products.
Therefore, the correct answer is:
C) increase; increase
An increase in demand for U.S. farm exports will increase the market prices for these exports and increase economic profit in these markets.

An Increase in Demand for U