Multiple Choice
The "Cherries for all" farm is selling cherries at $3 per pound and earns a total revenue of $300.The manager decides to increase the price to $4 per pound,but his decision reduces the total revenue to $240.Which of the following is a good explanation for what happened?
A) The demand for cherries is inelastic
B) The demand for cherries is perfectly inelastic
C) The demand for cherries is perfectly elastic
D) The demand for cherries is elastic
E) The demand for cherries is unit elastic
Correct Answer:
Verified
Correct Answer:
Verified
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