Technological improvements in agriculture that shift the supply of agricultural commodities to the right tend to a. increase total revenue to farmers as a whole because the demand for food is elastic b. reduce total revenue to farmers as a whole because the demand for food is inelastic c. increase total revenue to farmers as a whole because the demand for food is inelastic d. reduce total revenue to farmers as a whole because the demand for food is elastic

The correct answer is: **b. reduce total revenue to farmers as a whole because the demand for food is inelastic** **Explanation:** When technological improvements in agriculture shift the supply curve of agricultural commodities to the right, it means there's an increase in supply. This typically leads to a decrease in the equilibrium price and an increase in the equilibrium quantity. The impact on total revenue (Price × Quantity) depends on the price elasticity of demand: - **Inelastic Demand:** When demand is inelastic (elasticity < 1), consumers do not significantly change their quantity demanded in response to price changes. Therefore, a decrease in price leads to a smaller proportional increase in quantity demanded, resulting in a **decrease in total revenue**. - **Elastic Demand:** When demand is elastic (elasticity > 1), consumers significantly change their quantity demanded in response to price changes. A decrease in price leads to a larger proportional increase in quantity demanded, resulting in an **increase in total revenue**. In the context of agricultural commodities, the demand for food is generally considered to be **inelastic** because food is a necessity, and consumers do not significantly reduce their consumption when prices change. Therefore, an increase in supply (shift to the right) tends to **reduce total revenue** for farmers. **Answer:** Option b. reduce total revenue to farmers as a whole because the demand for food is inelastic