Answer on Microeconomics Question for amanda
Is the demand for green chiles relatively elastic or inelastic? Suppose half of the green chile crop is destroyed by E. coli contamination. What will happen to the price of chiles? Give a prediction of an exact percentage change in price.
-0.8 = -50% / x
-0.8x = -50%
x = -50% /
PRICES WILL RISE 62.5%
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