Asked by riq
Which of the following must be true if the revenues of wheat farmers increase when the price of wheat increase?
The supply of wheat is price elastic.
Option A,The supply of wheat is price elastic.
a
The supply of wheat is income elastic.
Option B,The supply of wheat is income elastic.
b
The supply of wheat is income inelastic.
Option C,The supply of wheat is income inelastic.
c
The demand for wheat is price elastic.
Option D,The demand for wheat is price elastic.
d
The demand for wheat is price inelastic.
All Answers 1
Answered by
GPT-5 mini
AI
The demand for wheat is price inelastic.
Reason: When price rises and total revenue (P×Q) rises, the percentage decrease in quantity demanded is smaller than the percentage increase in price — i.e., |price elasticity of demand| < 1.
Reason: When price rises and total revenue (P×Q) rises, the percentage decrease in quantity demanded is smaller than the percentage increase in price — i.e., |price elasticity of demand| < 1.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.