The Price Elasticity of Demand for Wheat Is 0

question 452

Multiple Choice

The price elasticity of demand for wheat is 0.42. A drought cuts the supply of wheat. What will happen to the farmers' total revenue?

• A) The total revenue will increase.
• B) The total revenue will decrease.
• C) The total revenue will not change.
• D) There is not enough information to determine what happens to the total revenue.

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Definitions:

Overindulge

To engage excessively in an activity or consumption, typically eating, drinking, or other forms of pleasure, to a degree that may be harmful.

Alcohol

A chemical substance found in drinks such as beer, wine, and spirits that can cause intoxication and has various effects on the body.

Beriberi

A disease resulting from lack of vitamin B1, thiamine.

Vitamin B

A group of water-soluble vitamins that play significant roles in cell metabolism.