In the United States, 2015 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded. (9 points)

2014

2015

Quantity demanded (bushels)

2.2 billion

2.0 billion

Average price (per bushel)

$3.42

$4.26

a. Using the midpoint method, calculate the price elasticity of demand for winter wheat.

b. What is the total revenue for U.S. wheat farmers in 2014 and 2015?

c. Did the bad harvest increase or decrease the total revenue of U.S. wheat? How could you have predicted this from your answer to part a?