Question 1

Suppose the discovery of new hybrid wheat would increase the supply of wheat but the number of

buyers in a market decreases.

a. With the help of a diagram, explain what would happen to the equilibrium price and quantity

of wheat.

b. Based on your answer in part (a), if the demand for wheat is elastic, what would happen to

the wheat farmers' total revenue? Explain.

Mid T1 20-21 (Q).pdf - Adobe Acrobat Reader DC X File Edit View Window Help Home Tools Mid T1 20-21 (Q).p... x (? Sign In X Q 6 16 + 117% 9 0 b. A Based on your answer in part (a), if the demand for wheat is elastic, what would happen to the wheat farmers' total revenue? Explain. Export PDF (3 marks) Adobe Export PDF Table 1 Convert PDF Files to Word or Excel Online Price Select PDF File Quantity (RM Mid T1 20-21 (Q).pdf X 100 0 80 Convert to 60 20 Microsoft Word (*.docx) v 40 30 20 Document Language: 40 English (U.S.) Change 0 50 C. Refer to Table 1. Using the midpoint method, if the price falls from RM80 to RM60, (i) calculate the price elasticity of demand. Show the formula and all your calculation Convert (4 marks) (ii) using the absolute value, determine the type of elasticity. Create PDF (1 mark) Store and share files in the Document Cloud (Total: 14 marks) Learn More 9 O W - () TO P al ENG 9:05 AM 18/8/2020