Discovery make farmers better off?

But this discovery make farmers better off? As a first cut to answer this question of what happens to the entire revenue of the farmers. Farmers PQ's total sales, the price for the wheat times the amount sold. The discovery concerns the farmers in two contrasting ways. The hybrid allows farmers to More wheat (Q increases), but now every bushel of wheat sold less (P drops). Whether total revenue rises or falls depends on the elasticity of demand. In practice, the demand for basic foods such as wheat is generally inelastic, These products are relatively inexpensive and have some good alternates. If the demand is inelastic, as shown in Figure 5-8, a decrease in the price causes total revenue to fall. You can do this in the figure: The price of wheat drops significantly, The quantity of wheat sold rising only slightly. Total sales drops from $ 300 to $ 220 So, the discovery of new hybrid lowers the total turnover, farmers receive for the sale of their crops.