A poor harvest for farmers may be desirable because

Name: A poor harvest for farmers may be desirable because
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

In the case of inelastic demand, a decrease in supply (such as from a poor harvest) leads to a higher price increase than the decrease in quantity sold, resulting in higher total revenue for farmers. This is because consumers are relatively unresponsive to price changes and will continue to buy the product despite higher prices.

A Poor Harvest for Farmers May Be Desirable Because