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Demand for agricultural products

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November 16th, 2022

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.

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