For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [Select Multiple] Group of answer choices Due to profit effect, their utility as producers increases. The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect. Their is no effect since subsistence households never sell or buy their staple production. Due to price effect, their utility as consumers decreases.
For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [Select Multiple] Group of answer choices Due to profit effect, their utility as producers increases. The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect. Their is no effect since subsistence households never sell or buy their staple production. Due to price effect, their utility as consumers decreases.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter6: Simple Pricing
Section: Chapter Questions
Problem 6MC
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For a subsistence agricultural household, which of the following happen when the
Multiple]
Group of answer choices
- Due to profit effect, their utility as producers increases.
- The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect.
- Their is no effect since subsistence households never sell or buy their staple production.
- Due to price effect, their utility as consumers decreases.
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