Significant portion of mexico avocado production

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Suppose that there is a hurricane that wipes out a significant portion of Mexico's avocado production. As a result, the price of avocado toast in San Francisco increases from $10.00 to $10.50. In the week after the price change, the number of orders of avocado toast sold decreased from 7,500 to 6,800. What is the elasticity of demand at this time scale? Is demand elastic or inelastic? If prices stay the same for several months, do you expect the change in consumption from the first few days to increase, decrease, or stay the same? Briefly explain your reasoning.

Reference no: EM132368909

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