The Current Equilibrium Price and Quantity in the Market for Walnuts

Multiple Choice

The current equilibrium price and quantity in the market for walnuts are $5 per pound with 10,000 pounds supplied. Supermarkets are expecting to see sales rise to 15,000 pounds due to an unusually large crop of walnuts. If the price elasticity of demand is 1.8, what is the new price per pound of walnuts?

A) $7
B) $5
C) $6
D) $4