The current equilibrium price and quantity in the market for walnuts are $5 per pound with 10,000 pounds supplied. Supermarkets are expecting to see the price fall to $4 per pound due to an unusually large crop of walnuts. If the price elasticity of demand is 1.8, what is the new quantity demand for walnuts?
A) QD = 30,000
B) QD = 10,000
C) QD = 15,000
D) QD = 20,000

Question

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The Answer of The current equilibrium price and quantity in the market for walnuts are $5 per pound with 10,000 pounds supplied. Supermarkets are expecting to see the price fall to $4 per pound due to an unusually large crop of walnuts. If the price elasticity of demand is 1.8, what is the new quantity demand for walnuts?
A) QD = 30,000
B) QD = 10,000
C) QD = 15,000
D) QD = 20,000

The Current Equilibrium Price and Quantity in the Market for Walnuts