A number of the growers are concerned about the price decrease initiated by the stretch of favorable weather conditions, as they believe it will lead to decreased 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 pistachios between the price levels of $15 and $9 per ton is, between these two points, demand is Thus, you can conclude that the grower's claim is due to the favorable weather conditions. ,meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the favorable weather conditions. Enter these values in the following table. Total Revenue (Thousands of Dollars) Before Favorable Weather Conditions After Favorable Weather Conditions

A number of the growers are concerned about the price decrease initiated by the stretch of favorable weather conditions, as they believe it will lead to decreased 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 pistachios between the price levels of $15 and $9 per ton is, between these two points, demand is Thus, you can conclude that the grower's claim is due to the favorable weather conditions. ,meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the favorable weather conditions. Enter these values in the following table. Total Revenue (Thousands of Dollars) Before Favorable Weather Conditions After Favorable Weather Conditions

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

HOLA
20
QUANTITY (Thousands of tons)
10
50
A number of the growers are concerned about the price decrease initiated by the stretch of favorable weather conditions, as they believe it will lead to
decreased 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 pistachios between the price levels of $15 and $9 per ton is
between these two points, demand is
Thus, you can conclude that the grower's claim is
due to the favorable weather conditions.
Total Revenue (Thousands of Dollars)
meaning that
because total revenue will
Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the favorable weather conditions. Enter these
values in the following table.
Before Favorable Weather Conditions After Favorable Weather Conditions

The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. Suppose a
stretch of unseasonably good weather occurs, allowing pistachio growers to produce more pistachios per hectare.
Show the effect this shock has on the market for pistachios 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 i
to its original position, just drag it a little farther.
snaps back
PRICE (Dollars per ton)
30
24
10
20
30
Demand
QUANTITY (Thousands of tons)
Supply
40
50
Demand
101
Supply
?

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