If soybean farmers know that the demand for soybeans is inelastic,and they want to increase their total revenue,what should they all do
A)They should plant more soybeans so that they would be able to sell more each year.
B)They should increase spending on fertilizer in an attempt to produce more on the acres they farm.
C)They should reduce the number of acres they plant in soybeans.
D)They should use better machinery.

Question

Quizplus · Accepted Answer

Since the demand for soybeans is inelastic, increasing the quantity supplied by planting more soybeans would result in a decrease in the price of soybeans, leading to a decrease in revenue. Similarly, increasing spending on fertilizer or using better machinery would increase the cost of production, resulting in a decrease in revenue. Hence, the best option for soybean farmers to increase their total revenue is to reduce the number of acres they plant in soybeans, which would lead to a decrease in the supply of soybeans, causing an increase in price and total revenue.

If Soybean Farmers Know That the Demand for Soybeans Is