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10. A storm destroys half the fava bean crop. Is this event more likely to hurt fava bean farmers if the demand for fava beans is very elastic or very inelastic? Explain.

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PRINCESSCABRERA161IN

Answer:

The fava bean farmers will be harmed more if the demand for fava beans is elastic. If the demand for a good is elastic it means that the amount demanded is highly affected by price. Therefore when a storm damages the fava bean crop and lowers the amount supplied, the resulting change in price will lower demand by a disproportionately large amount.

PICKLESGAMING33IN

Answer:

The fave bean farmers will be harmed more if the demand for fave beans is elastic. If the demand for a good elastic it means the the amount demanded is highly affected by the price.

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