Multiple Choice
Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut farmers changes from $16 to $14 billion. Thus,
A) the demand for peanuts is elastic.
B) the demand for peanuts is inelastic.
C) the demand curve for peanuts has shifted to the left.
D) no inference can be made as to the elasticity of demand for peanuts.
Correct Answer:
Verified
Correct Answer:
Verified
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