This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: An agricultural corn market faces a positive supply shock due to a beneficial rainy season and the ... (Read 62 times)

acc299

  • Hero Member
  • *****
  • Posts: 569
on: Jul 1, 2018
An agricultural corn market faces a positive supply shock due to a beneficial rainy season and the use of new genetically modified seeds. As a result, farmers face the largest crop harvest in decades. Which answer below explains how a farm could actually go bankrupt under this scenario.
 
  A) The elasticity of supply for corn is elastic such that a positive shock reduces total revenue.
  B) The demand for corn is inelastic such that a positive supply shock reduces total revenue.
  C) An inelastic demand curve will cause revenue to fall because price decreases by more than the increase in quantity demanded.
  D) B and C

Question 2

The current price floor in the agricultural lettuce market makes it such that the price of lettuce is 25 higher than the equilibrium price and that 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, how much would revenue (P  Q) change for the lettuce company if the government removed the current price floor?
 
  A) Revenue will increase by 15.60.
  B) Revenue will decrease by 15.60.
  C) Revenue will increase by 40.60.
  D) Revenue will increase by  9.40.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jrpg123456

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


acc299

  • Hero Member
  • *****
  • Posts: 569
Reply #2 on: Jul 1, 2018
Correct answers!


jrpg123456

  • Sr. Member
  • ****
  • Posts: 317
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

The human birth process as an example of positive feedback. The human birth process as an example of positive feedback.
The role of the liver in fuel supply to the blood. The role of the liver in fuel supply to the blood.
Risks of infectious disease increase in (a) high-density agricultural populations compared to (b) lo Risks of infectious disease increase in (a) high-density agricultural populations compared to (b) lo
The Wong-Baker “Faces” pain rating scale The Wong-Baker “Faces” pain rating scale
A company spends $117 500 today and has positive cash inflows of $34 000 for each of the next 6 ... A company spends $117 500 today and has positive cash inflows of $34 000 for each of the next 6 ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Neural Reflex Arc Animation

For a complete list of videos, visit our video library