A bumper crop would be bad news for farmers if their crop has an inelastic demand because their total revenue would
A) rise along with price.
B) rise as price falls.
C) fall as price rises.
D) fall along with price.

Question

Quizplus · Accepted Answer

When demand is inelastic, an increase in supply (such as from a bumper crop) leads to a decrease in price that disproportionately reduces total revenue, because the quantity sold does not increase enough to offset the price drop.

A Bumper Crop Would Be Bad News for Farmers If