Question
A late spring freeze resulted in a smaller crop of peaches. Because of a 30% reduction in output, there was a 15% increase in price.
A late spring freeze resulted in a smaller crop of peaches. Because of a 30% reduction in output, there was a 15% increase in price. Which of these responses is the best estimate of the price elasticity of demand for peaches?
Explain answer in detail.
Select one:
A.-2
B.-0.5
C.2
D.0.5
E. Not enough Info to determine
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
