Knowing that the demand for wheat is inelastic,if all farmers voluntarily cut back 10 percent of their wheat crop,what would happen
A)Consumers of wheat would buy more wheat.
B)Wheat farmers would suffer a reduction in their revenue.
C)Wheat farmers would increase their revenue.
D)The demand for wheat would decrease.

Question

Quizplus · Accepted Answer

When demand is inelastic, a decrease in supply leads to an increase in price that is proportionally larger than the decrease in quantity, resulting in higher total revenue for farmers.

Knowing That the Demand for Wheat Is Inelastic,if All Farmers