Help E

Instructions: type your answers and present your answer in a coherent and logical way. For any answer that requires calculations, all of the steps need to be shown for whatever answer is offered. Answers without proof of steps lose half of the points for that question (if the question requires only a diagam, then half the points. If the answer requires more things, depends on the number of things required). Finally, if an exercise requires a diagram, draw it in a way that it can easily be read and include labels for anything that requires labels (e.g. curves in a diagram, equilibrium levels, etc.) Each student is to turn its own unique homework. The idea is for each student to do its own homework without help from others (although students can use notes, textbook, etc.) In the US, the price elasticity of demand for eggs has been estimated to be around -.28 (assume this elasticity is constant even for signicant changes in the price of eggs). If the equilibrium price of eggs increases 50% due to some supply shock (as an example, the Avian-u in 2015 double the price of eggs for some months), then a) Use a typical supply and demand diagram in order to illustrate the effect of the shock on the market for eggs. Then use words to explain your diagram. b) Use the information of the elasticity of demand in order to compute the expected effect on quantity demanded. Show any calculations involved. c) If the monthly revenue of the egg industry in the US was close to $650 millions (this is just a rough estimate based on dividing annual revenue by 12) in 2019, compute the monthly effect on the total revenue of the egg industry. Show any calculations involved