14. Application: Demand elasticity and agricultureThe following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose newgathering 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 almonds 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 backto its original position, just drag it a little farther.PRICE (Dollars perton)24SO122436SupplyDemandQUANTITY (Thousands of tons)DemandSupply Several growers are happy with this advancement in technology because now they can sell more crops, which they believe will lead to increases inrevenue. 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 almonds between the price levels of $15 and $9 per ton is meaning that betweenthese two points, demand isThus, you can conclude that the grower's claim isbecause total revenue willdue to the technological Improvement.Confirm your previous conclusion by calculating total revenue in the almond market before and after the technological improvement. Enter these.values in the following table.Total Revenue (Thousands of Dollars)Before Technological Improvement After Technological Improvement

Equilibrium is defined as the balance of demand and supply in the market. Demand and supply affect…

14. Application: Demand elasticity and agriculture The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. 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 almonds 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. PRICE (Dollars per ton) 24 15 0 Supply Demand 24 QUANTITY (Thousands of tons) Demand 10 Supply

14. Application: Demand elasticity and agriculture The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. 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 almonds 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. PRICE (Dollars per ton) 24 15 0 Supply Demand 24 QUANTITY (Thousands of tons) Demand 10 Supply

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 23P: Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram....

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Using Exercise 16.20, sketch the effects in parts (a) and (b) on a single supply and demand diagram. What prediction would you make about how the improved information alters the equilibrium quantity and price?
Describe the mechanism by which demand creates its own supply.
14. Application: Demand elasticity and agriculture Consider the market for apples. The following graph shows the weekly demand for apples and the weekly supply of apples. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for apples 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.
Question 2Identify what sort of effects the following listed events have.You are required to define the market under study (for example: the labour market, oil market, etc). Explain whether the event acts on the demand or supply side, and whether the event leads to a quantity or price change, or leads to a shift in demand and/or supply.Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply.a) An increase in oil prices as a consequence of a price dispute in the world oil marketsb) The implementation of a minimum wagec) The implementation of subsidies to milk producers in Australiad) The implementation of a Carbon tax in the economy. A Carbon tax is charged according to the level of emissions of greenhouse gases in an economy.e) The implementation of an increase in tuition in University studies
Question 21.21 Which of the following goods (with their respective income-elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession? Dinner at a nice restaurant (+1.8) Chicken purchased at the grocery store for preparation at home (+0.25) Facial tissue (+0.6) Plasma-screen and LCD TVs (+4.2)
24. Omani government wanted to reduce the supply of high sugar drinks in the economy. As an economist, you will ask the government to _________. a. Decrease Tax on the high sugar drinks b. Give more subsidies to the producers of high sugar drinks c. Provide access to new technology for the producers of high sugar drinks d. Increase Tax on the high sugar drinks
Question 17 Kevin’s goal as a business manager is to increase total sales in dollar terms for his business. Should he raise or lower his prices? a raise prices if demand is elastic; lower prices if demand is inelastic b lower prices if demand is elastic; raise prices if demand is inelastic c raise prices regardless of whether demand is elastic or inelastic. d lower prices regardless of whether demand is elastic or inelastic.
20. When the income of the consumer increases, the supply will __________ . a. Contraction b. Extension c. Fall in supply. d. No change
Hashtags such as “toiletpaperapocalypse”, “toiletpapergate”, etc were trending on Twitter in Australia in early March 2020. Such trends occurred as a significant number of Australians rushed to panic-buying toilet papers amid fears of the coronavirus outbreak. When asked, many shoppers said they wanted to stockpile in case the virus was to spread across the community. a. Draw appropriate supply & demand graph(s) to illustrate the effects of the above shock on the market for toilet papers in Australia. In your own words, explain which curve(s) would shift and the reason behind the shift. b. Comment clearly on the changes in price and quantity of toilet papers in Australia following the shock above. c. Supermarkets have vowed not to increase the price of toilet papers. At the same time, they have moved to limit purchases to 4 packs per customer. What would happen to the market of toilet papers following the above policies by supermarkets? Suppose now toilet papers could be imported…
2. Consider the market for minivans. For each of the events listed here, identify which of the determinants of demand or supply are affected. Also indicate whether demand or supply increases or decreases. a. People decide to have more children. b. A stock market crash lowers people’s wealth.
Question 3 Explain why oil prices have fallen this year (2020). Be sure to identify the changes in key determinants of demand and supply.
12. Market equilibrium and disequilibrium The following graph shows the monthly demand and supply curves in the market for calendars. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.