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. 10 O Supply Demand 00 Supply PRICE (Dollars per bushel) Demand 8 12 16 20 QUANTITY (Millions of bushels) One of the growers is concerned about the price decrease caused by the spell of good weather because she 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 elasticity of demand for com between the prices of $5 and $4 per bushel is _ , which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will as a result of the spell of good weather.Confirm your previous conclusion by calculating total revenue in the corn market before and after the spell of good weather. Enter these values in the following table. Before Spell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars)4. Application: Demand elasticity and agriculture Consider the market for com. The following graph shows the weekly demand for corn and the weekly supply of com. Suppose a spell of unusually good weather occurs, which enables com producers to generate more com per acre of land. 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. 10 O Supply Demand 8 Supply PRICE (Dollars per bushel) Demand 2 8 12 16 20 QUANTITY (Millions of bushels)Using the midpoint method, the price elasticity of demand for corn between the prices of $5 and $4 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will a result of the spell of good weather. 0.41 0.82 1.22 Confirm your previous conclusion by calculating total revenue in the corn market before and after the spell of go . Enter these values in the following table. 1.64Using the midpoint method, the price elasticity of demand for com between the prices of $5 and $4 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that her claim is because total revenue will as a result of the spell of good w elastic inelastic unit elastic Confirm your previous conclusion by calculating total revenue in the corn market before and after the spell of good weather. Enter these values in the following choreUsing the midpoint method, the price elasticity of demand for com between the prices of $5 and $4 per bushel is which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will as a result of the spell of good weather. correct incorrectUsing the midpoint method, the price elasticity of demand for corn between the prices of $5 and $4 per bushel is , which means demand is V between these two points. Therefore, you would tell the grower that her claim is because total revenue will as a result of the spell of good weather. decrease increaseConfirm your previous conclusion by calculating total revenue in the corn market before and after the spell of good weather. Enter these values in the following table. Before Spell of Good Weather After Spell of Good Weather Total Revenue (Millions of Dollars)
