Given that the demand for grains is price-inelastic, we would expect that if the harvest of grains increases significantly, other factors constant, then grain farmers' total revenues would increase.

Question

Quizplus · Accepted Answer

Since the demand for grains is price-inelastic, a significant increase in the harvest (and thus supply) would lead to a decrease in price that is proportionally larger than the increase in quantity sold, resulting in a decrease in total revenue for grain farmers.

Given That the Demand for Grains Is Price-Inelastic, We Would