Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 5 - Part II - Elasticity and its Application - Questions for Review - Page 108: 9

Answer

The event is more likely to hurt fava bean farmers when the demand curve is elastic.

Work Step by Step

The reason of this is that as supply decreases, prices will eventually increase. Furthermore, if the demand is elastic, there will be a slight drop in the quantity demanded. As a result, total revenue will be reduced.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.