Why might a good harvest be bad news for farmers?
A)Because the demand for many basic agricultural products is very inelastic.
B)Because the demand for many basic agricultural products is very elastic.
C)Because prices would likely rise.
D)Because much of the crop would spoil due to the lack of sales.

Question

Quizplus · Accepted Answer

A good harvest can be bad news for farmers because the demand for many basic agricultural products is very inelastic, meaning that consumers do not significantly increase their consumption in response to lower prices. Therefore, a large supply can lead to a significant drop in prices without a corresponding increase in quantity sold, potentially reducing farmers' income.

Why Might a Good Harvest Be Bad News for Farmers