Elasticity Determination Requires Quantity Data

Steps:

• Elasticity measures % change in quantity divided by % change in price.
• Price fall from P1 to P2 implies %ΔP is negative, but %ΔQ for demand and supply is unknown.
• Without quantity changes for wheat demanded or supplied, elasticities cannot be classified.
• Standard assumptions for wheat (inelastic demand/supply) do not apply without specifics.

Why C is correct:

• Not applicable; insufficient data to confirm any option.

Why the others are wrong:

• A: No evidence for both elastic.
• B: No evidence for demand inelastic and supply elastic.
• D: No evidence for both inelastic.

Not enough information. Final answer: Not enough information.