Problem
1. Suppose demand and supply have constant elasticity equal to 3. What happens to equilibruim price and auantity when the demand increases by 3% and supplu decreases by 3%?
2. Show that elasticity can be expressed as a constant times the change in the log of quantity divided by the change in log of price, Find constant A.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.