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Suppose the Price Elasticity of Demand for Oranges Is -1

Question 219

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Suppose the price elasticity of demand for oranges is -1.8.If a fall frost destroys one-third of the nation's orange crop, how will that affect total expenditures on oranges, all other things unchanged?


A) total expenditures will rise
B) total expenditures will fall
C) total expenditures will remain unchanged
D) not enough information is given to answer the question

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