In yearone, a fall in the price of golf balls raises the equilibrium price of golf clubs from$40 to$45 and the equilibrium quantity from10,000 to12,000. In the followingyear, a technological advance in golf club construction reduces the equilibrium price to$40 again and increases the quantity demanded from12,000 to18,000. In this case which of the following statements isTRUE? (You may assume that the reported elasticity of demand value is an absolutevalue)

A.

In yearone, the elasticity of supply is 0.57899 and in year two the elasticity of demand is 0.263

B.

In yearone, the elasticity of demand is 01.55 and in yeartwo, the elasticity of supply is 1.89

C.

The elasticity of supply in year one is 1.73 and in year two the elasticity of demand is 3.80

D.

None of the above

E.

In yearone, the elasticity of demand is 0.6487 and in yeartwo, the elasticity of supply is 0.529