Question
Why might a good harvest lead to a reduction in farmers' income? You may assume that the crops grown by farmers have a price inelastic
Why might a good harvest lead to a reduction in farmers' income? You may assume that the crops grown by farmers have a price inelastic demand (demand is inelastic with respect to price). You may also assume that the farmers' income is the revenue from the sale of their crops. Please explain using the concept of price elasticity of demand.
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Macroeconomics Principles and Applications
Authors: Robert e. hall, marc Lieberman
5th edition
1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238
