Demand Ia Supplyr I:I Supply .. N PRICE (Dollars per bushel) DU emand + I I I I I I I I I D B 16 24 32 4D QUhNTITY [Millions Ell bushels} One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 elascity of demand for wheat between 'd'1e prices of $10 and $6 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 spell of good weather. Connn your previous conclusion by caicuiab'ng total revenue in the wheat market before and aer the spell of good weather. Enter these values in the following tabie. Before Spell of Good Weather After Spell of Good Wea1er Total Revenue (Millions of Dollars) E E 16. Applicalion: Demand elaincitw,l and agriculture Consider the market for wheat. The following graph shows the weel-dyur demand for wheat and the weekly supplyr of wheat. Suppose a spell of unusuallyr good weather occurs, which enables wheat producers to generate more wheat per acre of land. Show the effect this shock has on the market for wheat 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 tn:r to move a curve and it snaps back to its original position, just drag it a little farther. 213 + Demand IE :- SUDDIH H E In 3 12 Supply a :1 E - - - - - - - - + a I Q g I L\" I U E I I and 4 I I I I D D B 1E| 24 32 4!] QUANTITY (Millions of bushels} One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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