Economic rent is the sum of actual earning and transfer earning.
a. True
b. False
Indicate whether the statement is true or false
Question 2
If the demand for corn is elastic, then:
a. there are not many substitutes for the consumption of corn.
b. the price elasticity of demand for corn is less than -1.
c. a decrease in price will reduce total revenue for corn producers.
d. an increase in price will increase total revenue for corn producers.
e. consumers will continue buying the same quantity even if price increases.
