Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 14

*During 2011, drought conditions throughout much of Europe substantially reduced the size of the corn, wheat, and soybean crops, three commodities for which demand is inelastic. Use the price-taker model to determine how the drought affected (a) prices of the three commodities, (b) revenue from the three crops, and (c) the profitability of those farming the three crops.