If the Demand for Corn Is Elastic,then

question 21

Multiple Choice

If the demand for corn is elastic,then:

• A)there are not many substitutes in the consumption of corn.
• B)the price elasticity of demand for corn is greater than 1.
• C)a decrease in price will reduce total revenue for corn producers.
• D)a decrease in price will increase total revenue for corn producers.
• E)consumers will continue buying the same quantity even if price increases.

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Definitions:

Sellers

Parties that provide products or services available for purchase in the market.

Mutual Interdependence

A situation in which the actions of one firm significantly affect the outcomes of other firms in the market, commonly seen in oligopolistic industries.

Perfectly Inelastic Demand

A situation where the quantity demanded does not change in response to changes in price.

Pricing Policy

A company's approach to setting the prices for its products or services, often based on costs, market demand, competition, and other factors.