An Agricultural Corn Market Faces a Positive Supply Shock Due

question 10

Multiple Choice

An agricultural corn market faces a positive supply shock due to a beneficial rainy season and the use of new genetically modified seeds.As a result,farmers face the largest crop harvest in decades.Which answer below explains how a farm could actually go bankrupt under this scenario.

• A) The elasticity of supply for corn is elastic such that a positive shock reduces total revenue.
• B) The demand for corn is inelastic such that a positive supply shock reduces total revenue.
• C) An inelastic demand curve will cause revenue to fall because price decreases by more than the increase in quantity demanded.
• D) B and C

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Definitions:

Dream

While sleeping, an individual undergoes a series of mental pictures, concepts, and sensations.

Unconscious Desire

Wishes or motivations that influence an individual's actions and thoughts without their direct awareness.

Random Neural Activity

Spontaneous firing of neurons in the brain that is not triggered by external stimuli or conscious thought, often associated with creativity and dreaming.

Manifest Content

In psychoanalysis, the literal storyline or surface level of a dream, as opposed to the hidden, symbolic meaning.