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nsider the market for wheat. The following graph shows the weekly demand for wheat and the weekly supply of wheat. Suppose new farming hnology is developed that enables growers to produce more crops with the same resources. ow the effect this shock has on the market for wheat by shifting the demand curve, supply curve, or both. te: 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 its original position, just drag it a little farther. 30 Demand 24 Supply Supply

nsider the market for wheat. The following graph shows the weekly demand for wheat and the weekly supply of wheat. Suppose new farming hnology is developed that enables growers to produce more crops with the same resources. ow the effect this shock has on the market for wheat by shifting the demand curve, supply curve, or both. te: 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 its original position, just drag it a little farther. 30 Demand 24 Supply Supply

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I mostly need help with the total revenue calculations at the bottom of the screenshot. If you could also briefly go over the fill in the blank questions too that could be great. I want to understand how those answers are used in the calculation of the total revenue values. Thanks!

Consider the market for wheat. The following graph shows the weekly demand for wheat and the weekly supply of wheat. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for wheat 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. ? 30 Demand 24 Supply Supply 18 12 Demand 10 20 30 40 50 QUANTITY (Millions of bushels) One of the growers is excited by this advancement because now he can sell more crops, which he believes will increase revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. Using the midpoint method, the price elasticity of demand for wheat between the prices of $15 and $9 per bushel is which means demand is v between these two points. Therefore, you would tell the grower that his claim is because total revenue will v as a result of the technological advancement. Confirm your previous conclusion by calculating total revenue in the wheat market before and after the technological advancement. Enter these values in the following table. Before Technological Advancement After Technological Advancement Total Revenue (Millions of Dollars) PRICE (Dollars per bushel)
Transcribed Image Text:Consider the market for wheat. The following graph shows the weekly demand for wheat and the weekly supply of wheat. Suppose new farming technology is developed that enables growers to produce more crops with the same resources. Show the effect this shock has on the market for wheat 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. ? 30 Demand 24 Supply Supply 18 12 Demand 10 20 30 40 50 QUANTITY (Millions of bushels) One of the growers is excited by this advancement because now he can sell more crops, which he believes will increase revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. Using the midpoint method, the price elasticity of demand for wheat between the prices of $15 and $9 per bushel is which means demand is v between these two points. Therefore, you would tell the grower that his claim is because total revenue will v as a result of the technological advancement. Confirm your previous conclusion by calculating total revenue in the wheat market before and after the technological advancement. Enter these values in the following table. Before Technological Advancement After Technological Advancement Total Revenue (Millions of Dollars) PRICE (Dollars per bushel)
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