4. Application: Demand elasticity and agriculture The following graph Illustrates the marloet for cashews. It plots the monthly supply of oashews and the monthly demand for cashews. Suppose new gathering technology is invented, allowing growers to produce more crops using the same amount of resources. Show the effect this shock has on the market for cashew: by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves Wlll snap into position, so ifvou try to move a curve and it snaps back to its original position, just drag it a little Farther. 4n 0 Demand 32 Supply El E' 2 3 24 . Supply a. E n a T 9, Lu 15 l 2 I E I I and g I I I I a J . I . U 3 IE 24 31 40 QUANTITY [Thousands oftons) Several growers are happy with this advancement ll1 technology because now theyI can sell more cropsf WI'IlCl'I they believe will lead to increases in revenue. Using elasticities, you Wlll be able to determine whether this price change will lead to a rise orfall in total revenue in this market. Using the midpoint method, the price elasticity of demand for cashews between the price levels of $20 and $12 per ton is V , meaning that between these two points, demand is V . Thus, you can conclude that the growers claim is V , because total revenue will v due to the technological improvement. Confirm your previous conclusion by calculating total revenue values .I'n the Following table. Before Technological Improvement After Technological Improvement Total Revenue (Thousands of Dollars) :l :I