The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose new gathering technology is invented, allowing growers to produce more crops using the same amount of resources. 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 ( ) 8 2 A a QUANTITY (Thousands of tons) Demand Supply 40 Total Revenue (Millions 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 almonds 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 daim is 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. meaning that because total revenue will Before Technological Improvement After Technological Improvement
The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose new gathering technology is invented, allowing growers to produce more crops using the same amount of resources. 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 ( ) 8 2 A a QUANTITY (Thousands of tons) Demand Supply 40 Total Revenue (Millions 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 almonds 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 daim is 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. meaning that because total revenue will Before Technological Improvement After Technological Improvement
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose new
gathering technology is invented, allowing growers to produce more crops using the same amount of resources.
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 (Dollars perton)
8
32
3
20
12
24
QUANTITY (Thousands of tons)
Demand
Supply
48
Total Revenue (Millions 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 almonds 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 daim is
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.
, meaning that
because total revenue will
Before Technological Improvement After Technological Improvement
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