Answer:
b) total expenditures will fall.
Explanation:
If the price elasticity of demand is 1.8, it means demand is elastic. When demand is elastic, a small change in price leads to a greater change in quantity demanded.
If a fall frost destroys some of the nation's crops, the quantity supplied would fall as a result. This would lead to a shortage and price of oranges would rise as a a result. The rise in price of oranges would lead to a reduction in demand because demand is elastic. This would lead to a reduction in expenditure by consumers.
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