According to Reuters, the price of fertilizer in Kenya in fact increased by 30%. You don't have access yet to current data on the size of the Kenyan maize crop and you would like to estimate how the higher price for fertilizer will affect price and quantity in the maize market. In Kenya growing maize requires intensive use of fertilizer. Previously, World Bank researchers have estimated that a one percent increase in the price of fertilizer reduces the supply of maize by 0.5 percent (F= -0.5). The demand and supply of maize are both inelastic with reliable estimates for the two parameters equal to P = -0.6 and P = 0.9. where the symbol are nor showing they are elasticities - -0.5 is fertilizer elasticity of supply of maize, -0.6 is price elasticity of demand, 0.9 is price elasticity of supply Q4. Assuming these estimates are correct, by what percentage would you expect the price of maize to increase in Kenya? By what percentage would you expect the quantity of maize to decline? Need Detailed Handwritten Solution

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