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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
Why might farmers' incomes decrease when there is an increase in supply in an agricultural market?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
When demand is price inelastic, an increase in supply leads to a significant drop in price, causing farmers' total revenue to decline despite selling more produce.
More Market MCQs
Practice related questions from the same subject.
- 1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?