Question

in country a, the price of wheat has increased greatly over the past year. because of this change, farmers in country a are planning to grow more wheat in the next few years. in the sample scenario, what does this mean about the elasticity of wheat in relation to supply? wheat is relatively inelastic. wheat is elastic. wheat is inelastic. wheat is relatively elastic.

Explanation:

Elasticity of supply measures the responsiveness of quantity supplied to a change in price. When the price of wheat increases and farmers plan to grow much more wheat in the next few years, it shows that the quantity supplied can change significantly in response to the price change. This indicates that wheat has a relatively elastic supply.

Answer:

Wheat is relatively elastic.