One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 apples between the prices of $10 and $6 per bushel is between these two points. Therefore, you would tell the grower that his claim is ,which mear demand is , because total revenue will as a result of the spell of good weather.
One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 apples between the prices of $10 and $6 per bushel is between these two points. Therefore, you would tell the grower that his claim is ,which mear demand is , because total revenue will as a result of the spell of good weather.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Consider the market for apples. The following graph shows the weekly
please help me
Transcribed Image Text:20
Demand
18
Supply
Supply
12
Demand
16
24
32
40
QUANTITY (Millions of bushels)
PRICE (Dollars per bushel)
Transcribed Image Text:One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 apples between the prices of $10 and $6 per bushel is
, which means
, because total revenue
demand is
between these two points. Therefore, you would tell the grower that his claim is
will
as a result of the spell of good weather.
Confirm your previous conclusion by calculating total revenue in the apple market before and after the spell of good weather. Enter these values in the
following table.
Before Spell of Good Weather After Spell of Good Weather
Total Revenue (Millions of Dollars)
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