Knowing that the demand for wheat is inelastic,if all farmers voluntarily plowed under 10 percent of their wheat crop,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 plowing under 10% of the crop) leads to a higher price and an increase in total revenue for producers, as 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