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22 June, 11:18

If soybean farmers know that the demand for soybeans is inelastic, in order to increase their total revenues they should a. use more fertilizers and weed killers to increase their yields. b. plant additional acres to increase their output. c. reduce the number of acres they plant to decrease their output. d. Both a and b are correct.

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  1. 22 June, 11:42
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    Answer: Option C

    Explanation: In simple words, inelastic demand refers to a situation when the demand of the buyer does not change as per the price of the commodity. Thus, the price does not increase or decrease with decrease or increase in demand.

    Hence the farmers should decrease the supply as there would be no profit for them to supply a product that has an inelastic demand.
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