Show Work Question Help cow was found in December 2003, analysts estimated that

Question

Show Work Question Help cow was found in December 2003, analysts estimated that beef. An estimate of Text Exercise 5.4 When the U.S. government announced that a domestic mac elasticity of beef demand is easein the short run by 10.4%as many other coun elasticity of beef you expect the price to change? If quantity increases by 10.4%, then price will es barred U e p e demand is -1.6 (Henderson, 2003). Assuming that only the domestic supply curve shifted, how much would by.% (Enter your response rounded to two decimal places).

Explanation / Answer

Price elasticity = % increase in quantity / % change in price

% change in price = % increase in quantity/ Price elasticity

% change in price = 10.4%/-1.6

% change in price = -6.5%

So, price will decrease by 6.5%

So, if quantity increases by 10.4%, then price will decrease by 6.5%.

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