1. Refer to the case study provided to you in class entitled "Typhoon Haiyan's deadly impact on the Philippines". Use the figure below to answer the questions that follow.

Figure showing the effects of Typhoon Haiyan on demand and supply of rice in Philippines

To answer the questions below, assume that the price of rice was converted from the PhilippinesPesso to the Australian Dollar. Also assume that positionon the graph represents the equilibrium price and quantities before the typhoon Haiyan devastation. Further assume that equilibrium positionrepresents the effects of typhoon Haiyan on the rice market two (2) months after the devastation.

1. Use the mid point formula to calculate the price elasticity of demand for rice in the Philippines. (2 marks)

Following your price elasticity of demand in answer (i), examine the factors that affected rice consumption in the Philippines.