Question

In 2017, Hurricane Irma had a significant, negative impact on the orange harvest in the state of Florida. The U. S. Department of Agriculture predicted that the quantity of oranges produced would be 21% lower than the previous year. If the price elasticity of demand for oranges is -1. 5, what impact would Hurricane Irma have on the price of oranges? change in the price of oranges:_______

Answer 1

As a result of Hurricane Irma causing the quantity of oranges to drop by 21%, the change in price of oranges will be increase of 14%.

What will be the change in price of oranges?

Price Elasticity is found as:
= Change in quantity / Change in price

You have the elasticity and the change in quantity so you can find the change in price as:

-1.5 = -21% / Price

Price x -1.5 = -21%

Price = -21% / -1.5

= 14%

In conclusion, price will increase by 14%.

Find out more on price elasticity of demand at https://brainly.com/question/5078326.