Suppose that bad weather negatively affects supply of oranges in Florida. How a moderate shift in the supply curve caused by this event is going to affect total revenue generated at this market if in the initial market equilibrium demand is inelastic? total revenue goes down total revenue does not change total revenue goes up
Suppose that bad weather negatively affects supply of oranges in Florida. How a moderate shift in the supply curve caused by this event is going to affect total revenue generated at this market if in the initial market equilibrium demand is inelastic? total revenue goes down total revenue does not change total revenue goes up
Chapter6: Elasticities
Section: Chapter Questions
Problem 18P: Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose...
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![Suppose that bad weather negatively affects supply of oranges in Florida. How a
moderate shift in the supply curve caused by this event is going to affect total
revenue generated at this market if in the initial market equilibrium demand is
inelastic?
total revenue goes down
total revenue does not change
total revenue goes up](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fccb668bc-10a4-4aaf-a388-7b2b8ddb3a25%2F0f07a962-9ccc-43ed-ac79-855a562aacc0%2Fxpvzgn_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that bad weather negatively affects supply of oranges in Florida. How a
moderate shift in the supply curve caused by this event is going to affect total
revenue generated at this market if in the initial market equilibrium demand is
inelastic?
total revenue goes down
total revenue does not change
total revenue goes up
Expert Solution
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Step 1 DECREASE IN SUPPLY
Bad weather affects the supply of oranges in Florida. It will decrease the supply of oranges in Florida. Decrease in supply will shift the supply backwards.
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