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The price elasticity of demand for fresh tomatoes has been estimated to be 2.22. If a new insecticide and fertilizer treatment yields a 20% increase in the nation's fresh tomato crop, how will that affect total revenue from fresh tomatoes, all other things unchanged?
a. Total revenue will fall.
b. Total revenue will rise.
c. Not enough information is given to answer the question.
d. Total revenue will remain unchanged.
Answers: 2
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The price elasticity of demand for fresh tomatoes has been estimated to be 2.22. If a new insecticid...
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