PRICE (Delars per tor 24 12 Demand 24 QUANTITY (Thousands of tons) Supply 40 Demand Supply Several growers are happy with this advancement in technology because now they can sell more crops, which they believe 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 pistachios between the price levels of $15 and 19 per ton is 0.33, meaning that between these two points, demand is inelastic. Thus, you can conclude that the grower's daim is incorrect because total revenue will increase due to the technological improvement.

PRICE (Delars per tor 24 12 Demand 24 QUANTITY (Thousands of tons) Supply 40 Demand Supply Several growers are happy with this advancement in technology because now they can sell more crops, which they believe 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 pistachios between the price levels of $15 and 19 per ton is 0.33, meaning that between these two points, demand is inelastic. Thus, you can conclude that the grower's daim is incorrect because total revenue will increase due to the technological improvement.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

PRICE (Delars per tor
18
24
M
4
12
24
QUANTITY (Thousands of tons)
Supply
Demand
O
Total Revenue (Thousands of Dollars)
Demand
Supply
Several growers are happy with this advancement in technology because now they can sell more crops, which they believe 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 pistachios between the price levels of $15 and 59 per ton is 0.33, meaning that
between these two points, demand is inelastic. Thus, you can conclude that the grower's claim is incorrect because total revenue will
increase due to the technological improvement.
Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the technological improvement. Enter these
values in the following table.
Before Technological Improvement After Technological Improvement

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