A recent news report lamented the plight of corn farmers in Wisconsin due to a severe drought. Which of the following best describes the effect on corn farmers in Minnesota, where sufficient rainfall occurred?

a. Their revenue increases because price increases and demand is elastic.
b. Their revenue increases because price increases and demand is inelastic.
c. Their revenue decreases because price decreases and demand is inelastic.
d. Their revenue decreases because price increases and demand is elastic.


b

Economics

You might also like to view...

How do taxes, pollution charges, and cap-and-trade work to reduce emissions?

What will be an ideal response?

Economics

If total spending exceeds total output, then

a. inventory levels will rise. b. inventory levels will remain constant. c. inventory levels will fall. d. output will eventually decrease.

Economics

The returns from the home country and foreign country capital markets are equalized if:

a. the home country interest rates are higher. b. the foreign country interest rates are higher. c. the foreign country has a higher price level. d. both countries have no capital controls.

Economics

Which of the following is a macro consequence of a sudden increase in the average level of prices?

A. People lengthen their time horizons. B. Nominal income falls by a smaller percentage than real income. C. People on fixed incomes benefit. D. Uncertainty is greater.

Economics