13. Application - Demand elasticity and agriculture Consider the market for soybeans. The following graph shows the weekly demand for soybeans and the weekly supply of soybeans. Suppose a spell of unusually good weather occurs, which enables soybean producers to generate more soybeans per acre of land. Show the effect this shock has on the market for soybeans by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into posion, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. 20 + Suppl Demand IEI 2 l:l E 3 12 Supply a E - - - - - - - - -+ a I Q g I L\" I O E I I and 4 I I I I D D 1|] 2'0 30 40 5|] QUANTITY (Milions of bushels) One of the growers is concerned about the price decrease caused by the spell of good weather because she feels it will lower revenue in this market. As an economics student, you can use elasticib'es to determine whether this change in price will lead to an increase or decrease in total revenue in this ma rket. Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is , Which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will as a result of the spell of good weather. Confirm your previous conclusion by calculating total revenue in the soybean market before and after the spell of good weather. Enter these values in the following table. Before Spell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars)Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is V , which means demand is v between these two points. Therefore, you would tell the grower that her claim is -ecause total revenue will V as a result of the spell of good weather. Confinn your previous conclusion by calculating total revenue in the soybean market before and after the spell of good Enter these values in the following table. Before Snell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars) \\:| |:| Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will esult of the spell of good weather. elastic inelastic unit elastic Confirm your previous conclusion by calculating total revenue in the soybean market before and after the spell of good weather. Enter these values in the following table. Before Spell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars)Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will as a result of the spell of good weather. correct incorrect Confirm your previous conclusion by calculating total revenue in the soybean market before and after the spell of good weather. Enter these values in the following table. Before Spell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars)Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will as a result of the spell of good weather. decrease increase Confirm your previous conclusion by calculating total revenue in the soybean market before and after the spell of good weather. Enter these values in the following table. Before Spell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars)