EBK ESSENTIALS OF ECONOMICS
EBK ESSENTIALS OF ECONOMICS
8th Edition
ISBN: 8220103599832
Author: Mankiw
Publisher: Cengage Learning US
Question
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Chapter 5, Problem 9QR
To determine

Price elasticity of demand and its effect.

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A storm destroys half the fava bean crop. Is this event more likely to hurt fava bean farmers’ income if the demand for fava beans is very elastic or very inelastic?  Explain your answer.
A typhoon destroys half the apple production, is this event more likely to hurt apple farmers if the demand for apple is very elastic or very inelastic? Explain.
Would you consider your demand for gas to be relatively elastic or inelastic? What changes do you make to your demand for gasoline when the prices start to climb up?
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