The impact of the 1930s crisis on the different regions of Country X varied depending the relationship of each region's ecconmy to the international marketplace,with Region A most drastically affected. Interestingly,demand in foreign markets only slightly afected by the drop in income level after 1929; the same was true of foreign demandfor the temperate-zone basic foodstuffs produced by a Region B. However,Regin B was better able to surive the crisis because it could adjust the suppky pf its crops.Since Region A could not ,its eccomy was devastated by the slight decrease in foreign demand.
Which is the follwing provises the most reasonable explanalation for the fact tha Region A's eccnomy was more drastically afected by the slight decarase in demand than waa Region B's?
A : Tropic crops like those produced by Region A usually command higher price on the world market than do basic foodstuffs like those produced by Region B.
B: Region B's ecconmy was dependent on annual crops,the supply of which is easily adjusted because the plants are renewed each year,in contrast to the perennial crops grown in Region A.
C:Becuase tropical goods are geneally bought by more afluent consumers,demand for these product rarely declines even when overall income level drops.
D: The temperate-zone basic foodstuff produced in Region B directly competed with similar crops produced by the countries that imported Region B's goods.
E: Because Region B's economy was dependent on the export of basic foodstuffs, there was only a slight decline in demand for its goods even after income levels drops.
my answer is C, open to discuss, thanks!  |