Consumers often base their spending on their estimated permanent income

The productivity of the agriculture sector (of the economy) increases dramatically. A likely consequence is:

A) increased resources flowing into the agriculture sector. B) an increase in the supply of foodstuffs and lower prices for foodstuffs. C) an increase in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is elastic. D) a decrease in the total revenue (farmers' receive) from selling foodstuffs, assuming the demand for their products is inelastic. E) none of the above

Which of the following is the formula for average revenue?

a. AR = TR - q b. AR = TR ÷ q c. AR = TR + q d. AR = TR × q