The Price Elasticity of Demand for Ground Beef Has Been

question 171

Multiple Choice

The price elasticity of demand for ground beef has been estimated to be 1.0.If mad cow disease strikes the United States and a large percentage of the cattle are removed from the market,how will that affect total expenditures on ground beef,all other things equal?

• A)Total expenditures will remain unchanged.
• B)Total expenditures will fall by more than 1%.
• C)Demand will fall by 1%,but total expenditures will fall by less than 1%.
• D)Total expenditures will rise.

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Definitions:

Age of Viability

The stage of fetal development at which a fetus has a significant chance of survival outside the uterus, typically around 24 weeks gestation.

Prematurely

Happening before the normal or expected time.

Fetus

A developing mammal or human from the embryonic stage to birth, after major structures have been outlined.

Uterus

A female reproductive organ where a fertilized egg implants and grows during pregnancy.