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5. Calculate the arc price elasticity of demand for wheat in the two situations below: The entire market for wheat Old price; $3.40/bu Old quantity; 2.5 billion bu New price: $3.20/bu New quantity; 2.525 billion bu Farmer Brown's Wheat Old price: $3.40/bu Old quantity; 28,000 bu New price: $3.20/bu New quantity; 35,000 bu Explain the reason for the difference in elasticities.
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