Econ Chapter 2 homework

Econ Chapter 2 homework - drop of demand for wheat abroad...

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Quentin Stephens Microeconomics P. 61, Q.R. 3 Ex. 2,5,6 10/9/08 Q.R. 3. The elasticity of demand is 6%/3% = 2% Ex.2 A. Ep = (18-16)(100+80)/(18+16) (100-80) = .529 B. (18 – 16/16)= %17 (100-80)/80= 25% 17%/25% =.680 C. 5. A. The price of wheat would stay the same in the United States if there was a 40%
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Unformatted text preview: drop of demand for wheat abroad. No, the farmers should not have to worry because that is not likely to happen, however if it did they farmers might have to move to lower export prices. 6....
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