Author Question: The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers ... (Read 83 times)

bobbie · **on:** Jun 29, 2018

The price elasticity of demand for corn is 0.4. A new hybrid of corn is discovered and all farmers start to use it, which increases the quantity of corn they can produce from each acre. What happens to the farmers' total revenue?

A) The total revenue will increase.
B) The total revenue will decrease.
C) The total revenue will not change.
D) There is not enough information to determine what happens to the total revenue.

Question 2

If the target exchange rate is 100 yen per dollar and the current exchange rate is 90 yen per dollar, the Fed will

A) sell dollars and the demand for dollars will increase.
B) sell dollars and the demand for dollars will decrease.
C) buy dollars and the demand for dollars will increase.
D) buy dollars and the demand for dollars will decrease.