Microeconomics 13th Edition by Russell Sobel, David Macpherson, Richard Stroup, James Gwartney

Exercise 11

During the summer of 1988, drought conditions throughout much of the United States 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.