The Fruit Yield Per Tree in an Orchard That Contains

question 59

Multiple Choice

The fruit yield per tree in an orchard that contains 50 trees is 100 pounds per tree each year. Due to crowding, the yield decreases by 1 pounds per season per every additional tree planted. How many additional trees should be planted for a maximum total annual yield?

• A)25 additional trees
• B)50 additional trees
• C)15 additional trees
• D)75 additional trees
• E)20 additional trees

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity to price changes.

Income Elasticity

A measure of how the quantity demanded of a good responds to a change in consumers' income, indicating the good's necessity or luxury status.

Price Inelastic

Price inelastic refers to a situation where the demand for a good or service is relatively unaffected by changes in its price, indicating that consumers continue to purchase the product even if its price rises or falls significantly.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in income.