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The discovery of a new hybrid wheat would increase the supply of wheat. As a result, wheat farmers would realize an increase in total revenue if the

a. supply of wheat is elastic.

b. supply of wheat is inelastic.

c. demand for wheat is inelastic.

d. demand for wheat is elastic.

User Leafmeal
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2 Answers

4 votes

Final answer:

Farmers will see an increase in total revenue from a new hybrid wheat if the demand for wheat is inelastic, because quantity demanded won't drop much despite the increased supply.

Step-by-step explanation:

The discovery of a new hybrid wheat that increases the supply of wheat may lead to an increase in total revenue only if the demand for wheat is inelastic. When demand is inelastic, it means that a change in price does not greatly affect the quantity demanded. Thus, if the supply increases due to a technological improvement like the Green Revolution, the increased quantity sold will not cause a significant drop in price, resulting in an increase in total revenue. However, if demand for wheat is elastic, the increased supply will lead to a significant decrease in price and may not result in increased revenue.

User Gablin
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1 vote

Answer:

According to me the answer is d. demand for wheat is elastic.

Step-by-step explanation:

User Richsage
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