An increase in productivity in the agricultural sector when the demand curve is inelastic results in __________ prices for consumers and __________ revenues for farmers
A)higher;lower
B)higher;higher
C)lower;lower
D)lower;higher
E)no change in;no change in

Question

Quizplus · Accepted Answer

When productivity increases, supply increases, leading to lower prices. With inelastic demand, the percentage drop in price is greater than the percentage increase in quantity sold, resulting in lower total revenue for farmers.

An Increase in Productivity in the Agricultural Sector When the Demand