The price elasticity of demand for a certain agricultural product is constant (over the
relevant range of prices) and equal to 2:50. The supply elasticity for this product is constant and
equal to 4. Originally the equilibrium price of this good was 50 per unit. Then it was discovered
that consumption of this product was unhealthy. The quantity that would be demanded at any
price fell by 52%. The percent change in the long run equilibrium consumption of this good was:
(a) 52%.
(b) 32%.
(c) 8%.
(d) 36%.
(e) There is not enough information to determine the answer.