Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have tried to solve this twice now and keep coming up with different combinations of answers, I think I am missing a step somewhere,

image text in transcribed

I have tried to solve this twice now and keep coming up with different combinations of answers, I think I am missing a step somewhere, and I end up shifting the curve to the wrong side each time.

image text in transcribedimage text in transcribed
14. Application: Demand elasticity and agriculture The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. 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 pistachios 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. 30 O Demand 24 Supply 0 8 Supply PRICE (Dollars per ton) 12 Demand 12 24 36 48 60 QUANTITY (Thousands of tons)Several growers are happy with this advancement in technology because now they can sell more crops, which they believe will lead to increases in revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using the midpoint method, the price elasticity of demand for pistachios between the price levels of $15 and $9 per ton is , meaning that between these two points, demand is . Thus, you can conclude that the grower's claim is , because total revenue will due to the technological improvement. Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement Total Revenue (Thousands of Dollars)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Accounting

Authors: Robert N Anthony, Leslie K Breitner

10th Edition

136071821, 9780136071822

More Books

Students also viewed these Economics questions

Question

1. To gain knowledge about the way information is stored in memory.

Answered: 1 week ago