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    Inelastic agricultural demand and innnovation

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    "Because agricultural demand is inelastic, a technological advance that lowers production costs will reduce total revenue. Thus, farmers have no incentive to introduce such a technique." True or false or uncertain. Briefly explain.

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    Agricultural demand is inelastic which means that an increase in price leads to a less than proportionate decrease in quantity demanded. Similarly, a decrease ...

    Solution Summary

    Discusses the incentive for farmers to introduce new styles of farming.