2. Agricultural Economics

Microeconomics Basics — Quiz

Test your understanding of microeconomics basics with 5 practice questions.

Practice Questions

Question 1

Suppose the market demand and supply functions for an agricultural product are $Q_D=150-5P$ and $Q_S=30+5P$. What is the equilibrium price $P^*$ and quantity $Q^*$?

Question 2

If the price of a bushel of corn increases from \$4 to \$6 and the quantity demanded decreases from 120 to 80 units, what is the price elasticity of demand using the midpoint method?

Question 3

If the short-run price elasticity of supply for fresh tomatoes is $E_S=0.6$, this implies that:

Question 4

Which statement best defines consumer surplus in an agricultural market?

Question 5

Producer surplus in an agricultural market is best described as: