Question
Suppose that the price of peanuts falls from $3.5 to $2.5 per bushel and that, as a result, the total revenue received by peanut farmers
Suppose that the price of peanuts falls from $3.5 to $2.5 per bushel and that, as a result, the total revenue received by peanut farmers changes from $12 to $13 billion. Thus,
A. the demand for peanuts is inelastic.
B. the demand for peanuts is elastic.
C. he 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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Managerial Economics Applications, Strategies and Tactics
Authors: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
13th edition
1285420926, 978-1285962399, 978-1285947853, 1285947851, 978-1285420929
