Can a good harvest be bad news for farmers?

No, because the increase in production and sales will offset the effect of any decline in prices.
1% (1 vote)
Yes, because prices can go down by a larger proportion than the increase in production and sales.
99% (96 votes)
Total votes: 97
Learning objectives: 
Understanding the concept of elasticity.
Understanding the concept of price-elasticity of demand.
Understanding the difference between goods with an elastic and an inelastic demand.
Identifying examples of goods with an inelastic demand.
Understanding the relationship between elasticity of demand and producer revenue.
Understanding government policies aimed at helping farmers by reducing agricultural production.
Understanding certain aspects of the EU's common agricultural policy.
Presentation videos: