The price elasticity of demand for cabbage has been estimated to be 0.25.If an insect infestation destroys 20% of the nation's cabbage crop (and thus reduces supply), how will that
affect total expenditures on cabbage, all other things equal?
A.Total expenditures will rise.
B.Total expenditures will fall.
C.Total expenditures will remain unchanged.
D.There is not enough information is given to answer the question.

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The Answer of The price elasticity of demand for cabbage has been estimated to be 0.25.If an insect infestation destroys 20% of the nation's cabbage crop (and thus reduces supply), how will that
affect total expenditures on cabbage, all other things equal?
A.Total expenditures will rise.
B.Total expenditures will fall.
C.Total expenditures will remain unchanged.
D.There is not enough information is given to answer the question.

The Price Elasticity of Demand for Cabbage Has Been Estimated