### N Year One A Fall In The Price Of Tennis Balls Raises The Equilibrium Price Of T

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n year one, a fall in the price of tennis balls raises the equilibrium price of tennis rackets from $40 to $45 and the equilibriumluantity from 10,000 to 12,000. In the following year, a technological advance in tennis racket construction reduces the equilibrium price to $40 again and increaseshe quantity demanded from 12,000 to 15,000. In this case, which of the following statements is true for Year 1 and Year 2? D A. In year 1, the elasticity of supply was 1.55 and in year 2, the elasticity of supply was 1.8977 :3 B. In year 1, the elasticity of supply was 1.55, and in year 2, the elasticity of demand was 1.897D C. In year 1, the elasticity of demand was 1.55 and in year 2, the elasticity of supply was 1.897Q) D. In year 1, the elasticity of demand was 1.55 and in year 2, the elasticity of demand was 1.897