14. Application: Demand elasticity and agriculture Consider the market for corn. The following graph shows the weekly demand for earn and the weekly supply of corn. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for corn by Shifting the demand curve, Supply curve, or both. Note: Select and drag one or hath of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps hack to Its original position, Just drag it a little farther. 30 O Demand 24 Supply 18 Supply PRICE (Dollars per bushel) 12 Demand 6 6 12 18 24 30 QUANTITY (Millions of bushels) One of the growers is excited by this advancement because now she can sell more crops, which she believes will increase revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. Elastic / Inelastic / Unit Elastic 0.33 / 0.67 / 1.33 / 1.5 Using the midpoint method, the price elasticity of demand for corn between the prices of $15 and $9 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 technological advancement. Correct / Incorrect Decrease / IncreaseConfirm your previous conclusion by calculating total revenue in the corn market before and after the technological advancement. Enter these values in the following table. Before Technological Advancement After Technological Advancement Total Revenue (Millions of Dollars)