What will happen to equilibrium of peanut butter traded in, Ask an Expert

Economics

A drought has damaged a peanut crop.

experts expect prices to increase by 30%, elasticity of demand for peanut butter is -.6, elasticity of supply for peanut butter is .40.

what will happen to equilibrium of peanut butter traded in the market after the 30% increase in the price of peanut butter? stay the same, increase, not enough info to answer, or decrease.

what will happen to the total revenue os us peanut butter producer? stay the same, decrease, increase, or not enough information to sell?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9476239

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