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Answer

a) EP = %ΔQ / %ΔP EI = %ΔQ / %ΔI


2 = %ΔQ / 6% 1 = %ΔQ / 4%
%ΔQ = 2 . 6% = 12% %ΔQ = 1 . 6% = 4%
Exy = %ΔQ / %ΔP So, %ΔQ = 12% + 4% - 3% = 13%
1,5 = %ΔQ / -2%
%ΔQ = 1,5 . -2% = -3%
The firm expect to sell next year is 1,200 x (100% + 13%) = 1,200 x
113%
= 1,356 tons

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