Because the demand for wheat tends to be inelastic,what would the development of a new,more productive hybrid wheat tend to do
A)increase the total revenue of wheat farmers
B)decrease the total revenue of wheat farmers
C)weaken the demand for wheat
D)weaken the supply of wheat

Question

Quizplus · Accepted Answer

When demand is inelastic, an increase in supply (due to more productive wheat) leads to a lower price and a decrease in total revenue for farmers, as the percentage drop in price outweighs the percentage increase in quantity sold.

Because the Demand for Wheat Tends to Be Inelastic,what Would