If the Demand for an Agricultural Product Is Inelastic, a Bumper

question 196

Multiple Choice

If the demand for an agricultural product is inelastic, a bumper crop will

• A) raise price and decrease total revenues.
• B) raise price and increase total revenues.
• C) lower price and decrease total revenues.
• D) lower price and increase total revenues.

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Definitions:

Maximin Strategy

A decision rule used in situations of uncertainty to maximize the minimum gain that can be secured.

Equilibrium

A state where market supply and demand balance each other, and, as a result, prices become stable.

Dominant Strategy

In game theory, a strategy that is best no matter what the opposition does.

Players

In an economic context, players refer to individuals or entities actively participating in a market or economic model.