Price Effects of a Pipeline Break. Consider a city that gets its natural gas from two pipelines, with each pipeline supplying half the city’s natural gas. Suppose the price elasticity of supply is...

Price Effects of a Pipeline Break. Consider a city that gets its natural gas from two pipelines, with each pipeline supplying half the city’s natural gas. Suppose the price elasticity of supply is 0.70 and the price elasticity of demand is 0.55. If one pipeline breaks, by how much will the price of natural gas increase? (Related to Application 6 on page 455.)