If the Price Elasticity of Demand for Apples Is 0

question 155

Multiple Choice

If the price elasticity of demand for apples is 0.8,then a 2.4% increase in the price of apples will decrease the quantity demanded of apples by

• A)1.92%,and apples sellers' total revenue will increase as a result.
• B)1.92%,and apples sellers' total revenue will decrease as a result.
• C)3%,and apples sellers' total revenue will increase as a result.
• D)3%,and apples sellers' total revenue will decrease as a result.

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Definitions:

Shut Down

The temporary or permanent cessation of operations, often referring to business closure due to economic events or strategic decisions.

Purely Competitive Seller

Describes a market situation where a large number of sellers offer identical products, and no single seller can influence the market price.

Product Price

The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

Purely Competitive Market

A market structure characterized by a large number of small firms, all selling identical products, with no single firm able to influence the market price.