The Price Elasticity of Demand for Cabbage Has Been Estimated

question 38

Multiple Choice

The price elasticity of demand for cabbage has been estimated to be -0.25.If an insect infestation destroys 20 percent of the nation's cabbage crop, how will that affect total expenditures on cabbage, all other things unchanged?

• A) total expenditures will rise
• B) total expenditures will fall
• C) total expenditures will remain unchanged
• D) not enough information is given to answer the question

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Definitions:

Sacral Segments

Portions of the spinal cord that correspond to the sacral part of the vertebral column, which is crucial for transmitting nerve signals to and from the lower parts of the body.

Inhibitory Action Potentials

Electrical signals in neurons that decrease the likelihood of the neuron firing, thus reducing neuronal activity.

Sacral Region

The area of the body related to the sacrum, a triangular bone at the base of the spine formed by the fusion of five sacral vertebrae.

Myogenic Mechanism

A physiological mechanism by which blood vessels automatically adjust their resistance to maintain constant blood flow despite changes in arterial blood pressure.