Which of the following statements best describes the demand for agricultural commodities?
a) It takes a small decline in price to induce a large increase in the amount of agricultural products demanded.
b) The marginal utility of additional units of agricultural output diminishes very rapidly.
c) Small increases in income cause demand to increase by a proportionately larger amount.
d) When price declines, the resulting substitution effect is very large.© BrainMass Inc. brainmass.com October 10, 2019, 12:08 am ad1c9bdddf
The correct answer is b. Marginal utility describes how much happiness one derives from the next unit consumed. A person doesn't desire vast ...
The expert determines the best description for the demand for agricultural products.