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Esther Owns a Small Organic Farm

Question 128

Multiple Choice

Esther owns a small organic farm. Her boyfriend, Lou, is an expert on fruit and vegetable prices. When Esther consults him about raising her prices, he assures her that if she does,her total revenue would increase. That's because within the price range she's considering,


A) there would be no change in quantity demanded
B) there would be a substantial change in quantity demanded
C) the price elasticity of demand is greater than one
D) the price elasticity of demand is equal to one
E) the price elasticity of demand is less than one

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