If the Demand for Bananas Is Elastic,then an Increase in the Price

question 42

Multiple Choice

If the demand for bananas is elastic,then an increase in the price of bananas will

• A)increase total revenue of banana sellers.
• B)decrease total revenue of banana sellers.
• C)not change total revenue of banana sellers.
• D)There is not enough information to answer this question.

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Economist Amartya Sen

An Indian economist and philosopher, noted for his contributions to welfare economics, social choice theory, and for his work on famine, human development theory, and the underlying mechanisms of poverty.

Famine

Famine is a severe shortage of food, often due to disaster, war, or economic failure, leading to widespread hunger and malnutrition.

Unequal Access

A situation where different groups or individuals have varying levels of access to resources, information, or opportunities, often leading to disparities and inequality.