Suppose that bad weather negatively affects supply of oranges in Florida. How a moderate shift in the supply curve caused by this event is going to affect total revenue generated at this market if in the initial market equilibrium demand is inelastic? total revenue goes down total revenue does not change total revenue goes up

Suppose that bad weather negatively affects supply of oranges in Florida. How a moderate shift in the supply curve caused by this event is going to affect total revenue generated at this market if in the initial market equilibrium demand is inelastic? total revenue goes down total revenue does not change total revenue goes up

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider any market where the Supply Curve is given by O = 25 + 0.2P and the Demand curve is given by 500-0.3P Ask: a) Calculate prices and equilibrium quantity of this market b) Consider that this market operates with prices equal to 900.00. What's happening? c) Regarding the result found in (b), consider the impacts of a change in the supply curve to O = 50+0.2P. Discuss the results and plot the fit graphs on the supply curves.
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