If demand for lima beans is inelastic, a poor lima bean harvest could increase the total revenue of lima bean producers.

Question

Quizplus · Accepted Answer

When the demand for a good is inelastic, a decrease in supply (like a poor harvest) results in a proportionally larger increase in price. This means that even though fewer lima beans are produced, the increase in price can lead to an increase in revenue for lima bean producers.

If Demand for Lima Beans Is Inelastic, a Poor Lima