One possible effect of the increased reliance on cheap imported rice is the decrease in the demand for locally produced palay, ceteris paribus. If this happens, the demand for palay will shift to the left. Based on Figure 1, identify the TR, TR’ and ΔTR of the sellers at the farm evel

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
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One possible effect of the increased reliance on cheap imported rice is the decrease in
the demand for locally produced palay, ceteris paribus. If this happens, the demand for
palay will shift to the left. Based on Figure 1, identify the TR, TR’ and ΔTR of the sellers
at the farm evel

Figure 1. Palay Market at the Farm Level
P
S
P
P'
0
b
D
D'
Q'Q
Figure 2. Rice Market at the Retail Level
P
P
P'
0
ad
Q'
S
S'
D
Transcribed Image Text:Figure 1. Palay Market at the Farm Level P S P P' 0 b D D' Q'Q Figure 2. Rice Market at the Retail Level P P P' 0 ad Q' S S' D
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