question archive Good weather brings a bumper tomato crop
Good weather brings a bumper tomato crop
Subject:EconomicsPrice:2.88 Bought3
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.
