If the Demand for Foodstuffs Is Inelastic,which of the Following

question 41

Multiple Choice

If the demand for foodstuffs is inelastic,which of the following positions would be most beneficial to Farmer Jones?

• A)Bad weather for Jones and good weather for all other farmers.
• B)Bad weather for all farmers except Jones (who witnesses good weather).
• C)Bad weather for all farmers.
• D)Good weather for all farmers.
• E)There is not enough information to answer the question.

---

Definitions:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.

External Benefit

A benefit that results from an activity but affects uninvolved third parties who did not choose to incur that effect, often leading to market inefficiencies.

Inefficient Equilibrium

A state in a market where resources are not allocated optimally, leading to wastage or loss of potential gain.

Price and Quantity

The relationship between the price of an item and how much of that item is available or demanded at that price point.