Question

Answer multi-choices a and b
A)

If Wheat farmers know that the demand for wheat is inelastic , and they want to increase their total revenue, they should all:

() plant more wheat so that they would be able to sell more each year.
() increase spending on fertilizer in an attempt to produce more on the acres they farm.
() reduce the number of acres they plant in wheat.
() use better machinery

B)

There is an illegal market for all sorts of non-pharmaceutical drugs in any community. However, there are side effects of illegal drug use such as crime. Users often turn to crime to finance their habit. This has a negative impact on society and the public would like to reduce drug usage amongst its citizens. What would likely happen to crime related activity if more police force was used to reduce the supply? Assume the total dollar value of drug-related crime is positively related to total expenditure on drugs.

() increase
() decrease since this would discourage suppliers.
() remain constant
() there is not sufficient information to answer this question.

Answer 1