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Total expenditures for coffee reached a maximum at a price of $5 per lb. At this price the demand for coffee is

User Amal Ajith
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6 votes

Answer:

" Unitary elastic" would be the correct approach.

Step-by-step explanation:

  • Whenever the overall spending would be at the optimal energy, the production is component elastic, since the amount spent was hardly starting to fall as well as neither increasing.
  • And therefore it is wonderfully sensitive to changement in price, and that's why the government spending is optimum as well as the quantity supplied would be unit elastic.

Total expenditure then becomes the upper limit for unit quantity demanded besides coffee.

User Adaline Simonian
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