I need help with this question please ## Understanding Price Elasticity and Technological Improvement in the Cashew Market### Graph ExplanationThe graph illustrates the relationship between the price of cashews (in dollars per ton) and the quantity supplied and demanded (in thousands of tons). It features two supply curves:- **S1**: Initial supply curve.- **S2**: New supply curve after technological improvement.The demand curve remains unchanged. The initial equilibrium point is where the initial supply curve **S1** intersects with the demand curve, while the new equilibrium is at the intersection of **S2** and the demand curve.### Analytical ApproachSeveral growers are pleased with advancements in technology, which they believe will increase their revenue by allowing them to sell more crops. By applying elasticity concepts, we will determine if these price changes result in higher total revenue within this market.1. **Using the Midpoint Method**: - Calculate the price elasticity of demand for cashews between the price levels of $20 and $12 per ton. - Assess whether demand is elastic, unitary, or inelastic at these points.2. **Determine the Impact**: - Analyze if the growers' claims are valid based on the calculated elasticity. - Decide if total revenue increases or decreases due to technological improvements.### ConclusionTo further validate, calculate total revenue in the cashew market before and after technological improvements. Input the calculated values into the table below:| | Before Technological Improvement | After Technological Improvement ||------------------------------------------|----------------------------------|---------------------------------|| **Total Revenue (Thousands of Dollars)** | [Enter Value] | [Enter Value] |This structured approach will help assess the financial impact of technology on the cashew market. **14. Application: Demand Elasticity and Agriculture**The following graph illustrates the market for cashews, plotting the monthly supply and demand. With the invention of a new gathering technology, growers can produce more cashews using the same amount of resources.**Objective:** Show how this technological advancement affects the cashew market by shifting the demand curve, supply curve, or both.**Instructions:**- Select and adjust one or both curves to the desired position. Curves will snap into place. If a curve snaps back, try dragging it a bit further.**Graph Explanation:**- **Axes:** - The vertical axis represents the price of cashews in dollars per ton. - The horizontal axis shows the quantity of cashews supplied and demanded.- **Curves:** - **Demand Curve (orange):** Shows the inverse relationship between price and quantity demanded. Slopes downward. - **Supply Curve (two positions):** - **Initial Supply (S₁, light gray):** Indicates the original supply curve. - **New Supply (S₂, dark gray):** Represents the supply curve after the introduction of new technology, shifting right.- **Interactions:** - The intersection of the demand curve and each supply curve indicates the equilibrium price and quantity. - With the shift from S₁ to S₂, the equilibrium moves, showing changes in market dynamics due to increased supply.**Impact Analysis:**This graphic allows students to explore how technological improvements can lead to increased supply, potentially lowering prices and increasing quantity sold, reflecting real-world agricultural economics.

Elasticity of demand, often referred to as price elasticity of demand, is a measure in economics…

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 cashews between the price levels of $20 and $12 per ton is between these two points, demand is Thus, you can conclude that the grower's claim is due to the technological improvement. , meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the cashew market before and after the technological improvement. Enter these values in the following table. Total Revenue (Thousands of Dollars) Before Technological Improvement After Technological Improvement