Question

The net benefit ratio (NBR) can be interpreted as the:

a. Percentage change in quantity demanded of food resulting from a 1% change in the price of crop’s price.
b. Percentage change in quantity demanded of food resulting from a 1% change in the income of households.
c. Percentage change in welfare demanded of food resulting from a 1% change in the price of crop’s price substitutes.
d. Percentage change in welfare resulting from a 1% change in the crop’s price.

Answer 1

d. Percentage change in welfare resulting from a 1% change in the crop’s price.

Step-by-step explanation:

(Net benefit ratio is the ratio of benefits to costs. So, it can be interpreted as percentage change in welfare resulting from 1% change in crop's price)