Suppose That the Price of Peanuts Falls from $3 to $2

question 122

Multiple Choice

Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut farmers changes from $16 to $14 billion. Thus,

• A) the demand for peanuts is elastic.
• B) the demand for peanuts is inelastic.
• C) the demand curve for peanuts has shifted to the right.
• D) no inference can be made as to the elasticity of demand for peanuts.

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Definitions:

Olfactory Receptor

A type of protein located in the cell membranes of olfactory neurons, involved in the detection of smell molecules.

Gene Duplication

The process by which a segment of DNA is copied resulting in multiple copies of the same gene, contributing to genetic variation and evolution.

Gene Family

A set of several similar genes, formed by duplication of a single original gene, and generally associated with similar functions.

Gene Recruitment

The evolutionary process by which a gene acquires a new function, often through the duplication and divergence of existing genes.