42
QuizMultiple Choice

The American Market Economy — Test

Question 42 • Economics

The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit? Choose three correct answers.

Answer
A
a rise in demand for organic produce
B
an increase in customers at the market
C
an increase in the cost of farm equipment
D
a sale on organic meats at the market
E
a change in the market price for non-organic fruit

Explanation

Profit depends on how much the family earns from selling vegetables and how much it spends to grow them. Higher demand for organic produce and more customers can increase vegetable sales, while higher farm-equipment costs can increase expenses and reduce profit. A sale on organic meats and a price change for non-organic fruit do not directly affect the family’s vegetable sales or production costs.

AI-written and checked against the verified answer.

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