When all farmers have a small harvest, their total (combined)revenue may actually go up.This shows that the market demand for these agricultural products is relatively price inelastic in this price range.

Question

Quizplus · Accepted Answer

If all farmers have a small harvest, the overall supply of agriculture products will decrease, leading to a relative scarcity in the market. Since the demand for these products is price inelastic, customers will still be willing to pay a high price for them despite the lower supply. This would result in higher revenue for the farmers, despite their small individual harvests.

When All Farmers Have a Small Harvest, Their Total (Combined)revenue