Why Would a Bumper Crop Be Bad News for Farmers

question 156

Multiple Choice

Why would a bumper crop be bad news for farmers?

• A) Their crop has an inelastic demand and the resulting drop in price reduces their total revenue.
• B) Their crop has an elastic demand and the resulting drop in price reduces their total revenue.
• C) Their crop has an inelastic demand and the resulting drop in price raises their total revenue.
• D) Their crop has an elastic demand and the resulting drop in price raises their total revenue.

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Definitions:

Restatement of Contracts

A set of model legal rules relating to contracts intended to clarify the principles of contract law and serve as a reference for judges and lawyers.

Preexisting Moral Obligation

A moral duty or responsibility that already exists before any new agreement or contract is made.

Consideration

The value (such as money, a service, or a promise) that is exchanged between parties in a contract.

Doctrine of Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise that the promisee has relied upon, resulting in a significant change of position.