The Price Elasticity of Demand for Fresh Zucchini Has Been

question 40

Essay

The price elasticity of demand for fresh zucchini has been estimated to be 2.25.A new irrigation system yields a 25% increase in the nation's crop of fresh zucchini.Which of the following best describes how this will affect total expenditures on zucchini, all other things equal?
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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Definitions:

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Obligations or responsibilities imposed by law, contract, or societal norms.

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A branch of philosophy dealing with what is morally right or wrong, encompassing moral principles that govern an individual's behavior or conducting an activity.

Law

A set of guidelines established and implemented by societal or government bodies to control conduct.

Society

A group of individuals living together in a more or less ordered community with shared laws, traditions, and values.