Calculate price elasticity when more producers expect prices

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Reference no: EM131095896

The following graph will represent U.S. dollars on the y-axis and lbs. on the x-axis.

Good X

1) Refer to the figure above. Calculate the price elasticity when more producers expect prices to increase tomorrow leading to a decrease of 4 lbs. in the Good X market.

A) EpD = 1.91

B) EpS = 0.94

C) EpD = 0.94

D) EpS = 1.91

2) From number 15 (point B), calculate the price elasticity when a hurricane strikes leading to a 1 lb. decrease in the Good X market.

A) EpD = 2.90

B) EpS = 0.34

C) EpD = 0.34

D) EpS = 2.90

3) From number 16 (point C), calculate the price elasticity when Americans prefer Good X by 2 lbs.

A) EpD = 0.18

B) EpS = 5.56

C) EpD = 5.56

D) EpS = 0.18

Reference no: EM131095896

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