PRICE (Dollars per ton) Application: Demand elasticity and agriculture The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. Suppose a stretch of unseasonably good weather occurs, allowing cashew growers to produce more cashews per hectare. Show the effect this shock has on the market for cashews 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. Demand Supply 20 16 12 12 8 6 12 18 Supply Demand Demand QUANTITY (Thousands of tons) 24 30 Supply

PRICE (Dollars per ton) Application: Demand elasticity and agriculture The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. Suppose a stretch of unseasonably good weather occurs, allowing cashew growers to produce more cashews per hectare. Show the effect this shock has on the market for cashews 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. Demand Supply 20 16 12 12 8 6 12 18 Supply Demand Demand QUANTITY (Thousands of tons) 24 30 Supply

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: The Supply Of And Demand For Productive Resources

Section: Chapter Questions

Problem 11CQ

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