Question

When heavy rain ruined the banana crop in Central​ America, the price of bananas rose from...

When heavy rain ruined the banana crop in Central​ America, the price of bananas rose from ​$ 1.00 a pound to ​$ 2.00 a pound.
Growers sold fewer​ bananas, but their total revenue remained unchanged.
The quantity of bananas decreased / increased by ——？   
​>>> Answer with a whole number.
The demand for bananas is​ _______.
A.
unit elastic
B.
elastic
C.
Inelastic
Business   Economics   
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Answer #1

The price of bananas rose from $1.00 to $2.00 per pound. As per the law of demand, when price rose, the quantity demanded falls. However, the total revenue remains same. The total revenue does is not changing even though the price is changing.

As a result of rise in the price

The quantity of bananas will decrease.

The demand for bananas is

A. UNIT ELASTIC.

With the change in the price is not changing. Hence, the elasticity of demand will be unit elastic. The elasticity will be one. The percentage change in the price will be equal to the percentage change in the quantity demanded.

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