If the demand for wheat is highly price inelastic, an extraordinarily large crop may reduce farm incomes.

Question

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If the demand for wheat is highly price inelastic, it means that even if the price of wheat changes, the demand for it will not change much. In this case, an extraordinarily large crop may cause an oversupply of wheat in the market, leading to a decrease in the price of wheat. As the demand for wheat is not very responsive to the price change, the decrease in price may not lead to a significant increase in demand, resulting in lower farm incomes.

If the Demand for Wheat Is Highly Price Inelastic, an Extraordinarily