Suppose the price of avocados increases by 7% in a given market in which the market demand curve for avocados is a "standard-looking," downward sloping curve. In this market, O avocado sellers' revenues necessarily increase. O avocado sellers' revenues increase only if the market demand curve for avocados is (own- price) inelastic. O avocado sellers' revenues increase only if the market demand curve for avocados is (own- price) elastic. O avocado sellers' revenues necessarily remain unchanged. O consumption of avocados necessarily decreases by 7%.

Suppose the price of avocados increases by 7% in a given market in which the market demand curve for avocados is a "standard-looking," downward sloping curve. In this market, O avocado sellers' revenues necessarily increase. O avocado sellers' revenues increase only if the market demand curve for avocados is (own- price) inelastic. O avocado sellers' revenues increase only if the market demand curve for avocados is (own- price) elastic. O avocado sellers' revenues necessarily remain unchanged. O consumption of avocados necessarily decreases by 7%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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