The Price Elasticity of Demand for Cabbage Has Been Estimated

question 195

Multiple Choice

The price elasticity of demand for cabbage has been estimated to be 0.25.If an insect infestation destroys 20% of the nation's cabbage crop (and thus reduces supply) ,how will that affect total expenditures on cabbage,all other things equal?

• A)Total expenditures will rise.
• B)Total expenditures will fall.
• C)Total expenditures will remain unchanged.
• D)The information is insufficient to answer the question.

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Definitions:

Political Polarization

The process by which the public's political opinions diverge significantly, often leading to two major, opposing viewpoint groups within a society.

Congressional Republicans

Members of the United States Congress who are part of the Republican Party, typically advocating conservative policies.

Congressional Democrats

Members of the Democratic Party who serve in the United States Congress, shaping and supporting legislation aligned with their party's policies.

Civil Rights

The rights of citizens to political and social freedom and equality.