If the demand for a particular agricultural product is highly elastic and bad weather causes the supply to decrease,then we would expect the price of agricultural products to
A)decrease and farmers' revenues to decrease.
B)increase and the demand to decrease.
C)increase while farmers' revenues decrease significantly.
D)increase by a large percentage while farmers' revenues decrease only slightly.

Question

Quizplus · Accepted Answer

When demand is highly elastic, a decrease in supply leads to a significant increase in price, but the quantity demanded drops significantly, causing farmers' revenues to decrease.

If the Demand for a Particular Agricultural Product Is Highly