Answer to Question #44497 in Economics of Enterprise for puva

Question

suppose the market for frozen orange juice is in equilibrium at a price of RM 1.00 per can and quantity of 4200 cans per month. now suppose that at a price of rm 1.50 per can,quantity demanded falls to 3000 cans per month and quantity supplied increases to 4500 cans per month

a) draw the appropriate diagram for this market.
b)calculate the price elasticity of demand for frozen orange juice between the price of RM1.00 and RM1.50 .is the demand elasticity elastic or inelastic.
c) calculate the elasticity of supply for frozen orange juice between price of RM 1.00 and RM1.50. is supply elasticity or inelastic.
d)explain in general what factors would affect the elasticity of demand for and supply of juice.