Consider the market for corn. The following graph shows the weekly demand for corn and the weekly supply of corn. Suppose a blight occurs that destroys a signicant portion of com crops. 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 both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. 20 + Supp Demand 16 C u] E In 3 12 Supply 3 D. g - - - - -+ E Q, s m 9 I [L 4 O 0 2 4 6 B 10 QUANTITY (Millions of bushels) One of the growers is excited by the price increase caused by the blight because he believes it 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. Using the midpoint method, the price elasticity of demand for corn between the prices of $10 and $12 per bushel is V , which means demand is V between these two points. Therefore, you would tell the grower that his claim is V , because total revenue will V as a result of the blight. Connn your previous conclusion by calculating total revenue in the corn market before and after the blight. Enter these values in the following table. Before Blight After Blight Total Revenue (Millions of Dollars) E E