If a Drought Increases the Price of Corn by 10

question 48

Multiple Choice

If a drought increases the price of corn by 10% and decreases the quantity of corn demanded by 5%,then demand for corn is

• A)elastic and total revenue to corn farmers will decrease.
• B)inelastic and total revenue to corn farmers will decrease.
• C)elastic and total revenue to corn farmers will increase.
• D)inelastic and total revenue to corn farmers will increase.

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Definitions:

Pocket Money

A small amount of money given to children by their parents as an allowance.

Maximum Utility

The highest level of satisfaction or fulfillment obtainable by an individual or society from their economic activities.

Hard Candies

Sweet confections that are solid and brittle, made primarily from sugar with various flavorings and colorings.

Pocket Money

An amount of money given at regular intervals by parents to their children, often to teach them about managing money.