Final answer:
A bumper crop in corn which increases market supply tends to lower corn prices, as the supply curve shifts to the right due to increased availability. This is most pronounced when demand is inelastic, potentially reducing total revenue for farmers despite selling more corn.
Step-by-step explanation:
When corn farmers experience a bumper corn crop, leading to a substantial increase in the market supply of corn, the result tends to be a decrease in the price of corn. This phenomenon occurs because the supply curve shifts to the right, suggesting a greater quantity of corn is available for sale at any given price. The concepts of supply and demand indicate that when supply increases significantly, and the demand remains relatively inelastic, prices generally fall. However, it's crucial to note that while prices decrease, if the demand for the product is inelastic, the total revenue for farmers may also decrease because the increase in the quantity sold does not compensate for the lower price.
A decrease in input costs or the introduction of new technology, such as improved seeds from the Green Revolution, can lead to a lower cost of production, which can further supply shifts. Conversely, if input prices were to rise or technology were to regress, supply would likely decrease.