Suppose the Price Elasticity of Demand for Oranges Is 1

question 99

Essay

Suppose the price elasticity of demand for oranges is 1.8.If a fall frost destroys one-third of the nation's orange crop, how will that affect total revenue from oranges, all other things unchanged?
A.Total revenue will rise.
B.Total revenue will fall.
C.Total revenue will remain unchanged.
D.Not enough information is given to answer the question.

---

Definitions:

Muffin Mixture

A batter specifically prepared for making muffins, usually containing flour, eggs, a leavener, liquids like milk or water, and other flavoring agents.

Aqueous Solutions

Solutions in which water is the solvent, often involving substances dissolved in water to form a homogeneous mixture.

Solvent

A substance, usually a liquid, capable of dissolving other substances without chemical change in the solvent or solute, forming a solution.

Aqueous Phase

The part of a system that is composed of water, especially when water is the solvent in a solution.