If the price of almonds changed as a result of a change in the ...

[Frost2351]

If the price of almonds changed as a result of a change in the supply of almonds, is the demand for almonds elastic or inelastic? Explain your an-swer.
 
  What will be an ideal response?

Question 2

Many fast-food restaurants have signs on their cash registers that read, Your meal is free if the cashier does not give you a receipt. What might be the purpose of such a sign? Hint: there is a moral hazard problem here.
 
  What will be an ideal response?

[Briannahope]

Answer to Question 1

The total revenue test indicates that the demand for almonds is elastic. The increase in the supply of almonds lowers the price but in-creases the total revenue. The total revenue test demonstrates that this outcomethe price and total revenue change in opposite directionsoccurs when the demand is elastic.

Answer to Question 2

In a fast-food restaurant it would be quite easy for the cashier to not ring up the purchase and simply pocket the cash. The sign is likely meant more as a warning to their employees to not steal. It is also a fairly cheap way of having someone else (the customer) do the monitoring of their employees behavior.