Technological advances in wheat production can lower farmers' total revenue because the
A)demand for wheat is inelastic.
B)demand for wheat is elastic.
C)supply of wheat is elastic.
D)supply of wheat is inelastic.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in price due to increased supply from technological advances leads to a proportionally smaller increase in quantity demanded, resulting in lower total revenue for farmers.

Technological Advances in Wheat Production Can Lower Farmers' Total Revenue