Question

In 2022, there was a water shortage for states served by the Colorado Aiver, Arizona is one of the states. This winter the West Coast has experienced an atmospheric river that has brought much need moisture to the West. This also increased the snow pack in the Rocky Mountains. Assume the Arizona farming community experiences a 16% increase in water supply. If crop yield of Cantaloupe increase by 20%, the the elasticity is and can be classified as Select the correct answer below. a. 0.8 , Inelastic b. 0.8, Elastic c. -0.8 , Inelastic d. =0.8, Elastic e. 1.25, Elastic f. 1.25, Unit Elastic g. -1.25 ,Inelastic h. -1.25, Elastic

Answer 1

The elasticity of the Cantaloupe crop yield in response to an increase in water supply is calculated at 1.25, indicating an elastic relationship, where a 16% increase in water supply leads to a 20% increase in yield. Option e is correct answer.

Step-by-step explanation:

The calculation of elasticity in this scenario involves comparing the percentage change in the quantity supplied of Cantaloupe to the percentage change in the water supply. Elasticity is calculated as the percentage change in quantity divided by the percentage change in the factor affecting it, in this case, water supply. Given a 16% increase in water supply and a 20% increase in crop yield, the elasticity would be calculated as 20%/16% which equals 1.25. This indicates that for every 1% increase in water supply, there is a 1.25% increase in crop yield of Cantaloupes. The correct answer to the student's question would be e. 1.25, Elastic, meaning that the response of crop yield to changes in water supply is elastic.