Assume That the Price Elasticity of Demand for Corn Has

question 84

Multiple Choice

Assume that the price elasticity of demand for corn has been estimated to be 2.33.Flash floods destroy 10% of Canada's crop of corn.Which statement BEST describes how this will affect total expenditures on corn,all other things equal?

• A) Total expenditures will remain unchanged.
• B) Total expenditures will fall.
• C) Total expenditures will rise.
• D) The information is insufficient to answer the question.

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Definitions:

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Benefit

An advantage or profit gained from something or an action that promotes well-being.

Common Goal

A shared objective or aim that is pursued by a group or team.

Common Identity

a form of social identity that is shared by members of a group, which influences their behavior and how they relate to one another.