If the demand for a particular farm product is inelastic between price P₁ and P₂ (where P₂ P₁),farmers as a group would want to sell their product at the A)higher price,but an individual farmer would rather sell his product at the lower price. B)higher price,and an individual farmer would rather sell his product at the higher price,too. C)lower price,but an individual farmer would rather sell his product at the higher price. D)lower price,and an individual farmer would rather sell his product at the lower price,too.

Question

If the demand for a particular farm product is inelastic between price P₁ and P₂ (where P₂ > P₁),farmers as a group would want to sell their product at the A)higher price,but an individual farmer would rather sell his product at the lower price. B)higher price,and an individual farmer would rather sell his product at the higher price,too. C)lower price,but an individual farmer would rather sell his product at the higher price. D)lower price,and an individual farmer would rather sell his product at the lower price,too.

Quizplus · Accepted Answer

When the demand for a product is inelastic, it means that the quantity demanded is not significantly impacted by changes in price. Therefore, if the price increases, the total revenue for the farmers would increase, and if the price decreases, the total revenue would decrease. As a result, farmers, as a group, would want to sell their product at the higher price P₂. Additionally, since an individual farmer is part of the group, they would also want to sell their product at the higher price to maximize their own revenue. Therefore, an individual farmer would also prefer to sell at the higher price, like the group.

If the Demand for a Particular Farm Product Is Inelastic