Good weather brings a bumper tomato crop

Subject:EconomicsPrice:2.88 Bought3

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Good weather brings a bumper tomato crop. The price of tomatoes falls from $6 to $4 a basket, and the quantity demanded increases from 200 to 400 baskets a day.

a. Over this price range, what is the price elasticity of demand? Is demand elastic, or inelastic?

b. If the quantity of fish demanded decreases by 5% when the price rises by 10%, is the demand for fish elastic, or inelastic? Explain.