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The Price Elasticity of Demand for Cabbage Has Been Estimated

question 101

Essay

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.There is not enough information is given to answer the question.


Definitions:

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Chemical Structure

The arrangement of atoms in a chemical substance and the chemical bonds that hold those atoms together, determining the substance's properties.

Sensory Adaptation

The process by which the sensitivity to a stimulus declines if the stimulus is presented for an extended period of time.

Stimulus

Any event or situation that evokes a response from an organism.

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