As a result of a poor growing season, the supply curve of apples shifted leftward, the equilibrium price of apples rose, and total revenue fell. This suggests that the price elasticity of demand for apples is
A)perfectly inelastic.
B)elastic.
C)inelastic.
D)unit elastic.
E)perfectly elastic.

Question

Quizplus · Accepted Answer

The total revenue fell despite the increase in price, indicating that the percentage decrease in quantity demanded was greater than the percentage increase in price, which is characteristic of elastic demand.

As a Result of a Poor Growing Season, the Supply