Suppose That When the Price of Corn Is $2 Per

question 170

Multiple Choice

Suppose that when the price of corn is $2 per bushel,farmers can sell 12 million bushels.When the price of corn is $3 per bushel,farmers can sell 10 million bushels.Which of the following statements describes what will happen and why

• A)The demand for corn is income inelastic, and so an increase in the price of corn will increase the income of corn farmers.
• B)The demand for corn is income elastic, and so an increase in the price of corn will increase the income of corn farmers.
• C)The demand for corn is price inelastic, and so an increase in the price of corn will increase the income of corn farmers.
• D)The demand for corn is price elastic, and so an increase in the price of corn will increase the income of corn farmers.

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