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.

---

Definitions:

Volume

The quantity of something, often measured in units, pieces, or amounts, used in various contexts such as sales, production, and trading.

Double-entry System

A system that records in appropriate accounts the dual effect of each transaction.

Double Line

This term is often used in accounting to denote totals or sums in financial statements, represented by drawing a double line.

Normal Balance

An account balance on the side where an increase in the account is recorded.