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 almonds between the price levels of $10 and $8 per ton is, meaning that between these two points, demand is ▼. Thus, you can conclude that the grower's claim is ▼, because total revenue will due to the technological improvement. Confirm your previous conclusion by calculating total revenue in the almond 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

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 almonds between the price levels of $10 and $8 per ton is, meaning that between these two points, demand is ▼. Thus, you can conclude that the grower's claim is ▼, because total revenue will due to the technological improvement. Confirm your previous conclusion by calculating total revenue in the almond 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that during the past year, the price of a laptop computer fell from $2,950 to $2,450. During the same time period, consumer sales increased from 430,000 to 619,000 laptops. Calculate the price elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) Original New Average Change Percentage Change Quantity Price Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price. Step 2: Calculate the average quantity by adding the original quantity and the new quantity and then dividing by 2. Do the same for the average price. Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do…
Part D As part of Government's IDIF initiative, a small technology company in the Eastern Region is developing laptop computers as substitutes to those imported from abroad. Based on market surveys, the company believes the quantity Q (in thousands of units) that will be demanded by consumers is related to the price P (in thousands of cedis) by the relationship Q= 48 – 2P', P>0. a. Find the price elasticity of demand when the price of the laptop is GHC 3,000. b. Determine where the demand is elastic, inelastic, and of unit elasticity with respect to price. c. Interpret the results of part (b) in terms of the behaviour of total revenue as a function of price.
One of the growers is excited by the price increase caused by the blight because he believes it will increase 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 soybeans between the prices of $10 and $12 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 blight. Confirm your previous conclusion by calculating total revenue in the soybean market before and after the blight. Enter these values in the following table. Before Blight After Blight Total Revenue (Millions of Dollars)
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9. Application: Demand elasticity and agriculture The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose an increase in pests destroys a major portion of almond trees. Show the effect this shock has on the market for almonds 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. PRICE (Delars per tor G Supply O Demand Supply @ 4