4. 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 new gatheringtechnology is invented, allowing growers to produce more crops using the same amount of resources.Show the affact this shock has on the market for almonds by shifting the demand curva, supply curva, 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 itsoriginal position, just drag it a little farther.PRICE(Dollars per loro240AQUANTITY (Thousands oftons)DemandSupply12Total Revenue (Thousands of Dollars)DemandSupply(?)Several growers are happy with this advancement in technology because now they can sell more crops, which they belleve 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 almonds between the price levels of $20 and $12 per ton isthese two points, demand isThus, you can conclude that the grower's claim isdue to the technological Improvement.meaning that between, because total revenueConfirm your previous conclusion by calculating total revenue in the almond market before and after the technological Improvement. Enter these values in thefollowing tableBefore Technological Improvement After Technological Improvement

The price elasticity of demand is a degree of the way a good deal of the quantity demanded of an…

Answered: Demand elasticity

Business

Economics

Demand elasticity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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