between 1950 and 2017, the price of wheat fell dramatically from $19.23 per bushel to $3.85 per bushel. Suppose between 1950 and 2017, the supply of wheat increased substantially due to increases in productivity, shifting the wheat supply curve to the right. With this supply shift, the amount by which the price of wheat falls will be larger the more▼inelasticelasticthe demand for wheat.

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Immanuel

Business

26 September, 02:04

between 1950 and 2017, the price of wheat fell dramatically from $19.23 per bushel to $3.85 per bushel. Suppose between 1950 and 2017, the supply of wheat increased substantially due to increases in productivity, shifting the wheat supply curve to the right. With this supply shift, the amount by which the price of wheat falls will be larger the more▼inelasticelasticthe demand for wheat.

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Konnor Leblanc · Answer 1

The more inelastic will be the demand for wheat.

Explanation:

Between 1950 and 2017, the price of wheat fell dramatically from $19.23 per bushel to $3.85 per bushel.

The supply of wheat increased substantially due to increases in productivity, shifting the wheat supply curve to the right.

Inelastic demand means that a proportionate change in the price of wheat will cause the quantity demanded to change less than proportionate.

With this shift in the supply curve as the price of wheat is falling the quantity of wheat is increasing. The larger the decline in the price of wheat the more inelastic will be its demand.