Assume That the Market for Barley Is in Equilibrium and the Demand

question 62

Multiple Choice

Assume that the market for barley is in equilibrium and the demand for barley is inelastic.Predict what happens to the revenue of barley farmers if a prolonged drought reduces the supply of barley.The drought will cause farm revenue to

• A)rise because there will be a shortage of barley.
• B)rise because the percentage decrease in quantity sold is less than the percentage increase in price.
• C)rise because the percentage increase in quantity sold is greater than the percentage increase in price.
• D)fall because of the decrease in the quantity of barley sold.

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Definitions:

Musculocutaneous Nerve

A nerve in the arm that innervates the biceps brachii muscle, playing a key role in bending the elbow and rotating the forearm.

Ansa Cervicalis

Ansa cervicalis is a loop of nerves in the neck that serves to innervate certain muscles responsible for movements of the larynx, pharynx, and other nearby structures.

Autonomic Reflexes

Reflex actions within the body that are involuntarily controlled by the autonomic nervous system, influencing functions such as heart rate and digestion.

Stretch Reflexes

The muscle contraction in response to stretching within the muscle, a mechanism known to maintain muscle tone.