The current price floor in the agricultural lettuce market makes it such that the price of lettuce is 25% higher than the equilibrium price and that 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, how much would revenue (P ? Q) change for the lettuce company if the government removed the current price floor?
A) Revenue will increase by $15.60.
B) Revenue will decrease by $15.60.
C) Revenue will increase by $40.60.
D) Revenue will increase by $ 9.40.
B
Economics
You might also like to view...
Claire works fifteen hours a week at a dry cleaning shop. Dustin is retired and living in a retirement home. Who is officially "unemployed"?
A) Claire B) Dustin C) Claire and Dustin D) neither Claire nor Dustin
Economics
The adult population of a country is 60 million. Of these adults, 20 million are employed and 30 million are unemployed. Therefore, the labor force of the country is _____
a. 40 million b. 30 million c. 50 million d. 60 million
Economics