Business, 23.08.2021 23:40 Lawrence101
Suppose that Chris had been charging $1.00 per pound for potatoes. When Chris lowered the price to $0.90 per pound, his total revenue fell. When Chris raised the price to $1.10, total revenue also fell. Which of the following could explain this?
A. $1.00 is the equilibrium price for potatoes.
B. At 90 cents, there is excess demand for potatoes.
C. $1.10 is more than Chris's customers' reservation prices.
D. The price elasticity of demand for potatoes is 1 at a price of $1.00 per pound.
Answers: 3
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