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Price elasticity of demand for potatoes

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Reference no: EM131068584

Suppose that the price elasticity of demand for potatoes is -.3 and that the price of potatoes were to drop by 10%.

A. What will happen to the quantity of potatoes demanded?

B. What will happen to consumer expenditures on potatoes? Note that consumer expenditures on potatoes equals total revenue of potato farmers. (provide a numerical answer and show your calculations.)

Reference no: EM131068584

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