The development of a new, more productive hybrid wheat would tend to decrease the total revenue of wheat farmers because:
A)the demand for wheat tends to be elastic
B)the supply of wheat tends to be elastic
C)the demand for wheat tends to be inelastic
D)the supply of wheat tends to be inelastic

Question

Quizplus · Accepted Answer

The demand for wheat tends to be inelastic, meaning that consumers do not significantly change the quantity of wheat they purchase in response to price changes. Therefore, if a new, more productive hybrid wheat increases the supply, leading to lower prices, the total revenue of wheat farmers would decrease because the percentage decrease in price would not be offset by a sufficient percentage increase in quantity sold.

The Development of a New, More Productive Hybrid Wheat Would