Knowing That the Demand for Wheat Is Inelastic,if All Farmers

question 4

Multiple Choice

Knowing that the demand for wheat is inelastic,if all farmers voluntarily did not plant wheat on 10 percent of their land,then

• A)consumers of wheat would buy more wheat.
• B)wheat farmers would suffer a reduction in their total revenue.
• C)wheat farmers would experience an increase in their total revenue.
• D)the demand for wheat would decrease.

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Majority Vote

A decision rule where the option that receives more than half of the votes wins, commonly used in elections and other decision-making processes.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, leading to a potential welfare loss.

Government Failure

A situation where government intervention in the economy causes inefficiencies or leads to a misallocation of resources.