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5. The demand for most agricultural products is rather inelastic. Thus, when badweather reduces the size of crops (i.e., supply decreases), a. farmers' incomes rise.

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5. The demand for most agricultural products is rather inelastic. Thus, when badweather reduces the size of crops (i.e., supply decreases), a. farmers' incomes rise. b. the marginal revenue of selling one more unit of an agricultural product is negative. c. the percentage decrease in crop sales exceeds the percentage increase in price. d. both a and b. e. both b and c. 6. If price elasticity of demand is 1.8 and price falls by 20 percent, then sales increase by a. 11.1 percent. b. 36 percent. c. 9 percent. (1. 90 percent

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