The Discovery of a New Hybrid Wheat Would Increase the Supply

question 399

Multiple Choice

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

• A) the supply of wheat is elastic.
• B) the supply of wheat is inelastic.
• C) the demand for wheat is inelastic.
• D) the demand for wheat is elastic.

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Definitions:

Penalty

A sum inserted into a contract not as a measure of compensation for its breach but rather as punishment for a default. The agreement as to the amount will not be enforced, and recovery will be limited to actual damages.

Lien

A legal right or claim against a property by a creditor to secure the payment of a debt or obligation.

Borrower

An individual or organization that receives funds from another party under the condition of returning it over time with interest.

Debt

Money owed by one party to another under the agreement that it will be repaid.