Multiple Choice
The current price floor in the agricultural lettuce market makes it such that price of lettuce is 25% higher than equilibrium price and 100 heads of lettuce are demanded.Assuming that the elasticity of demand for lettuce is -0.50,what would be the equilibrium quantity of lettuce if the government removed the current price floor?
A) Quantity = 125
B) Quantity = 121.5
C) Quantity = 112.5
D) Quantity = 75
Correct Answer:
Verified
Correct Answer:
Verified
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