The ongoing war between Ukraine and Russia has disrupted the wheat supply in the world market. If the demand for wheat is elastic whereas supply is inelastic, which of the following will most likely occur to the total revenue of wheat farmers around the world? Total revenue will increase Effect on total revenue is unknown Total revenue will decrease Total revenue will remain constant Total revenue will increase but total expenditure will decrease

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter6: Demand And Elasticity
Section: Chapter Questions
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The ongoing war between Ukraine and Russia has disrupted the wheat supply in the
world market. If the demand for wheat is elastic whereas supply is inelastic, which of
the following will most likely occur to the total revenue of wheat farmers around the
world?
Total revenue will increase
Effect on total revenue is unknown
Total revenue will decrease
Total revenue will remain constant
Total revenue will increase but total expenditure will decrease
Transcribed Image Text:The ongoing war between Ukraine and Russia has disrupted the wheat supply in the world market. If the demand for wheat is elastic whereas supply is inelastic, which of the following will most likely occur to the total revenue of wheat farmers around the world? Total revenue will increase Effect on total revenue is unknown Total revenue will decrease Total revenue will remain constant Total revenue will increase but total expenditure will decrease
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