In the context of agriculture, if the price of wheat increases by 10% and the quantity demanded decreases by 5%, what is the price elasticity of demand for wheat?

To find the price elasticity of demand for wheat, we use the formula which compares the percentage change in quantity demanded to the percentage change in price. In this case, the price of wheat increased by 10%, and the quantity demanded decreased by 5%. We calculate the price elasticity of demand by dividing the percentage change in quantity demanded (-5%) by the percentage change in price (10%). This gives us -0. 5, meaning that for every 1% increase in price, the quantity demanded decreases by 0.