Multiple Choice
The price elasticity of demand for fresh tomatoes has been estimated to be -2.22.If a new insecticide and fertilizer treatment yields a 20 percent increase in the nation's fresh tomato crop, how will that affect total expenditures on fresh tomatoes, all other things unchanged?
A) total expenditures will remain unchanged
B) total expenditures will fall
C) total expenditures will rise
D) not enough information is given to answer the question
Correct Answer:
Verified
Correct Answer:
Verified
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