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1) Use a few examples of the determinants of price elasticity of demand to analyze whether the demand for avocados is likely to be price
1) Use a few examples of the determinants of price elasticity of demand to analyze whether the demand for avocados is likely to be price elastic or inelastic (luxury vs necessity, amount of substitutes, timeframe, income share, narrowness of market).
2) Based on your analysis in question 1, explain and illustrate graphically what will happen to the total revenue of the avocados industry following a decrease in the price of avocados.
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