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Rice currently sells on the open market for $2 per bushel. We are told that the...

Rice currently sells on the open market for $2 per bushel. We are told that the price elasticity of demand for rice is 0.40. Poor weather conditions result in a bad harvest of rice and a subsequent 50% change in price. What will be the percentage change in the quantity demanded of rice, and will the revenues of rice farmers increase or decrease?

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