Show the effect this shock has on the market for soybeans 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.

DemandSupply010203040503024181260PRICE (Dollars per bushel)QUANTITY (Millions of bushels)DemandSupply

One of the growers is excited by this advancement because now she can sell more crops, which she believes will increase 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 soybeans between the prices of $15 and $9 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 technological advancement.

Confirm your previous conclusion by calculating total revenue in the soybean market before and after the technological advancement. Enter these values in the following table.

	Before Technological Advancement	After Technological Advancement
Total Revenue (Millions of Dollars)