Exhibit 39-8 -Refer to Exhibit 39-8.Assume That E₁ Represents the Initial Equilibrium

Multiple Choice

Exhibit 39-8

-Refer to Exhibit 39-8.Assume that E₁ represents the initial equilibrium in the market for grain X.As a result of increased agricultural productivity,total revenues for farmers in this market will

A) increase if the demand curve is perfectly inelastic.
B) increase if the demand curve is inelastic between E₁ and E₂.
C) decrease if the demand curve is inelastic between E₁ and E₂.
D) decrease if the demand curve is inelastic between E₁ and E₃.
E) none of the above