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Given the following demand schedule for snow peas : Price (dollars per bushel) :Quantity demanded (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4

Given the following demand schedule for snow peas :

Price (dollars per bushel) :Quantity demanded (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12,000

(1) Calculate The price elasticity of demand when the price increases from $3.00 to $6.00 per bushel. [ 15 marks]

(2) Interpret the result and elaborate with examples. [ 10 marks]

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