The Discovery of a New Hybrid Wheat Would Increase the Supply

question 31

Multiple Choice

The discovery of a new hybrid wheat would increase the supply of wheat.As a result,wheat farmers would realize an increase in total revenue if the

• A)supply of wheat is elastic.
• B)supply of wheat is inelastic.
• C)demand for wheat is inelastic.
• D)demand for wheat is elastic.

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Definitions:

Utility Function

A utility function is an economic model representing a consumer's preference ranking for various bundles of goods or services, quantifying satisfaction levels.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Wealth

The accumulation of valuable resources and possessions, which can include money, properties, and investments.

Risk Averse

The characteristic of preferring to avoid risk, where an individual or entity would choose a certain outcome over a gamble with a potentially higher, but uncertain, payoff.