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 hamburger, all other things unchanged?
A) total expenditures will remain unchanged
B) total expenditures will fall by more than 1 percent
C) demand will fall by 1 percent, but total expenditures will fall by less than 1 percent
D) total expenditures will rise
Correct Answer:
Verified
Correct Answer:
Verified
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