Essay
Assume the price elasticity of demand for corn has been estimated to be 2.33.Flash floods destroy 10% of the nation's crop of corn.Which of the following best describes how this will affect total expenditures on beans, all other things equal?
A.Total expenditures will remain unchanged.
B.Total expenditures will fall.
C.Total expenditures will rise.
D.There is not enough information is given to answer the question.
Correct Answer:
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