Knowing that the demand for wheat is inelastic,if all farmers voluntarily did not plant wheat on 10 percent of their land,then
A)consumers of wheat would buy more wheat.
B)wheat farmers would suffer a reduction in their total revenue.
C)wheat farmers would experience an increase in their total revenue.
D)the demand for wheat would decrease.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in supply (such as planting less wheat) leads to a higher price, which increases total revenue for farmers because the percentage increase in price is greater than the percentage decrease in quantity sold.

Knowing That the Demand for Wheat Is Inelastic,if All Farmers