Suppose that when the price of corn is $2 per bushel, farmers can sell 10 million bushels. When the price of corn is $3 per bushel, farmers can sell 8 million bushels. Which of the following statements describes what will happen and why?

Question

Answer

The demand for corn is price inelastic, and so an increase in the price of corn will increase the income of corn farmers.

Answer

The demand for corn is price elastic, and so an increase in the price of corn will increase the income of corn farmers.

Answer

None of the above.

Answer

The demand for corn is income inelastic, and so an increase in the price of corn will increase the income of corn farmers.

Answer

The demand for corn is income elastic, and so an increase in the price of corn will increase the income of corn farmers.

Crowdly

Suppose that when the price of corn is $2 per bushel, farmers can sell 10 millio...

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