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Several growers are happy with this advancement in technology because now they can sell more crops, which they believe will lead to increases in revenue. 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 cashews between the price levels of $20 and $12 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the technological improvement. , meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the cashew 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

Several growers are happy with this advancement in technology because now they can sell more crops, which they believe will lead to increases in revenue. 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 cashews between the price levels of $20 and $12 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the technological improvement. , meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the cashew 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

Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
Section: Chapter Questions
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Several growers are happy with this advancement in technology because now they can sell more crops, which they believe will lead to increases in revenue. 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 cashews between the price levels of $20 and $12 per ton is between these two points, demand is Thus, you can conclude that the grower's claim is due to the technological improvement. I Total Revenue (Thousands of Dollars) meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the cashew market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement
Transcribed Image Text:Several growers are happy with this advancement in technology because now they can sell more crops, which they believe will lead to increases in revenue. 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 cashews between the price levels of $20 and $12 per ton is between these two points, demand is Thus, you can conclude that the grower's claim is due to the technological improvement. I Total Revenue (Thousands of Dollars) meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the cashew market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement
The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. 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 cashews 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) 40 32 16 8 0 0 12 24 36 Demand QUANTITY (Thousands of tons) Supply 48 60 Demand Supply ?
Transcribed Image Text:The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. 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 cashews 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) 40 32 16 8 0 0 12 24 36 Demand QUANTITY (Thousands of tons) Supply 48 60 Demand Supply ?
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