The Price Elasticity of Demand for Peanuts Has Been Estimated

question 48

Multiple Choice

The price elasticity of demand for peanuts has been estimated to be -0.38.If an insect infestation destroys 20 percent of the nation's peanut crop, how will that affect total expenditures on peanuts, all other things unchanged?

• A) total expenditures will remain unchanged
• B) total expenditures will fall
• C) total expenditures will rise
• D) not enough information is given to answer the question

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Money in the form of coins or banknotes, especially that used to pay for goods or services.

Special Kind

A unique or particular type or category that stands out from others.

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An instrument validating an order by a drawer to a drawee to pay a payee.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.