suppose the following table gives the data on the price of rye sold in 2008 and 2009.
year price ($ per bushel) quantity (bushels)
2008 3000 8 milllion
2009 200 12 million
a. calculate the change in the quantity of rye demanded divided byt he change in the price of rye. measure the quantity of rye in bushels.
b. calculate thechange in quantity of rye demaded divided by the change in the price of rye but this time measure the quantity of rye in millions of bushels. compare your answer to the one you computed in a.
c. finally assuming that the demand curve for rye did not shift between 2008 and 2009 use the information in the table to calculate the price elasticity of demand for rye. use the midpoint for mula in your calculation. compare the value for the price elasticity of demand to the values you calculated in the a and b.