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If a Drought Increases the Price of Corn by 10

Question 58

Multiple Choice

If a drought increases the price of corn by 10% and decreases the quantity of corn demanded by 5%, then demand for corn is


A) elastic and total revenue to corn farmers will decrease.
B) inelastic and total revenue to corn farmers will decrease.
C) elastic and total revenue to corn farmers will increase.
D) inelastic and total revenue to corn farmers will increase.

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