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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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