Ceteris paribus, if the corn crop is 15 percent larger this year than it was last year, farmers will have to ________ the price

Question

alexgriva [62]

3 years ago

6

Ceteris paribus, if the corn crop is 15 percent larger this year than it was last year, farmers will have to ________ the price

of corn by ________ to sell the new crop.

Business

1 answer:

Yuki888 [10] · Answer 1 · 2022-01-29T02:32:39+03:00

Answer:

Reduce and more than 15 percent

Explanation:

As Inelastic Demand state that the percentage change in quantity demanded is less than the percentage change in price. Therefore, if the crop is 15 percent higher, farmers will have to reduce the cost of corn by 15 percent to sell the new crop. We know that supply and price share an inverse relationship to reduce sales as supply increases and new crops grow.