Which of the following statements represents a correct sequence of events?
A)Productivity rises in the agriculture sector,the supply curve of foodstuffs shifts to the left,price rises,and total revenue rises assuming demand is inelastic.
B)Productivity rises in the agriculture sector,the supply curve of foodstuffs shifts to the right,price rises,and total revenue rises assuming demand is inelastic.
C)Productivity rises in the agriculture sector,the supply curve of foodstuffs shifts to the right,price falls,and total revenue falls assuming demand is elastic.
D)Productivity rises in the agriculture sector,the supply curve of foodstuffs shifts to the left,price falls,and total revenue rises assuming demand is elastic.
E)none of the above

Question

Quizplus · Accepted Answer

When productivity rises, the supply curve shifts to the right, leading to a price decrease. If demand is elastic, total revenue falls as the percentage drop in price leads to a larger percentage increase in quantity demanded.

Which of the Following Statements Represents a Correct Sequence of Events