One of the growers is pleased with the price increase caused by the pests because he believes it will lead to increased 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 cashews between the price levels of $20 and $24 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the pestilence. meaning that because total revenue will

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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PRICE (Dollars per ton)
40
32
24
6
12
18
co
QUANTITY (Thousands of tons)
S
52
Demand
Total Revenue (Thousands of Dollars)
24
30
Demand
0
Supply
(c.)
One of the growers is pleased with the price increase caused by the pests because he believes it will ad to increased 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 cashews between the price levels of $20 and $24 per ton is
between these two points, demand is
. Thus, you can conclude that the grower's claim is
due to the pestilence.
Confirm your previous conclusion by calculating total revenue in the cashew market before and after the pestilence. Enter these values in the following
table.
, meaning that
, because total revenue will
Before Pestilence After Pestilence
Transcribed Image Text:PRICE (Dollars per ton) 40 32 24 6 12 18 co QUANTITY (Thousands of tons) S 52 Demand Total Revenue (Thousands of Dollars) 24 30 Demand 0 Supply (c.) One of the growers is pleased with the price increase caused by the pests because he believes it will ad to increased 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 cashews between the price levels of $20 and $24 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the pestilence. Confirm your previous conclusion by calculating total revenue in the cashew market before and after the pestilence. Enter these values in the following table. , meaning that , because total revenue will Before Pestilence After Pestilence
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