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 corn between the prices of $10 and $8 per bushel is_▼ , which means demand is between these two points. Therefore, you would tell the grower that his claim is , because total revenue will ▼ as a result of the spell of good weather. Confirm your previous conclusion by calculating total revenue in the corn 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)

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 corn between the prices of $10 and $8 per bushel is_▼ , which means demand is between these two points. Therefore, you would tell the grower that his claim is , because total revenue will ▼ as a result of the spell of good weather. Confirm your previous conclusion by calculating total revenue in the corn 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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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