If the market elasticity of demand for potatoes is -0.3in a perfectly compotitive market, then the individual farmer'selasticity of demand. a. will also be -0.3 b.depends on how large a crop the farmer produces. c. will range between -0.3 and -01.0 d. will be infinite If the market elasticity of demand for potatoes is -0.3in a perfectly compotitive market, then the individual farmer'selasticity of demand. a. will also be -0.3 b.depends on how large a crop the farmer produces. c. will range between -0.3 and -01.0 d. will be infinite
Explanation / Answer
If the market elasticity of demand for potatoes is -0.3in a perfectly compotitive market, then the individual farmer'selasticity of demand. a. will also be -0.3: I am assuming everyoneis a price taker and no influence can be done to any of them, thuseveryone's elasticity is also the same b.depends on how large a crop the farmer produces. c. will range between -0.3 and -01.0 d. will be infinite