If the demand for foodstuffs is inelastic,which of the following positions would be most beneficial to Farmer Jones?
A)Bad weather for Jones and good weather for all other farmers.
B)Bad weather for all farmers except Jones (who witnesses good weather).
C)Bad weather for all farmers.
D)Good weather for all farmers.
E)There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

If demand for foodstuffs is inelastic, it means that a change in the price of the good will result in only a small change in the quantity demanded. Therefore, Farmer Jones will benefit the most if he is the only one experiencing good weather while others are struggling with bad weather. This will allow him to potentially charge higher prices for his crops while still maintaining his customer base due to the inelastic demand.

If the Demand for Foodstuffs Is Inelastic,which of the Following