Corn farmers in a country are colluding to reduce the market supply of corn.This will successfully raise the farmers' incomes only if the demand for corn is:

Question

Quizplus · Accepted Answer

When the demand for corn is inelastic, a reduction in the market supply of corn due to collusion among farmers will lead to an increase in the price of corn, resulting in higher income for the farmers. Inelastic demand means that consumers are not very sensitive to changes in the price of corn, and so, even if the price increases, they will still buy similar quantities of corn. Therefore, the colluding farmers can earn higher incomes without losing many customers.

Corn Farmers in a Country Are Colluding to Reduce the Market