Assume recent cold weather has destroyed a substantial portion of Califor- nia's citrus crop (principally oranges, lemons

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Assume recent cold weather has destroyed a substantial portion of Califor- nia's citrus crop (principally oranges, lemons and grapefruit).

a. Provide a numerical estimate of the elasticity of demand for citrus fruits as a group, and explain why you feel this is a reasonable estimate.

b. Suppose the current (pre-frost) average price of a "citrus" is SI, and it turns out that there is one-third less citrus to be consumed this season because of the frost. What will the new price be?

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Principles Of Microeconomics

ISBN: 9780812224177

1st Edition

Authors: Eugene Silberberg And Gregory Ellis

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Question Posted: Nov 08, 2024 05:00 AM

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Assume recent cold weather has destroyed a substantial portion of Califor- nia's citrus crop (principally oranges, lemons

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Principles Of Microeconomics

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