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The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. 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 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. 8 St 2 PRICE (Dollars perton) LD 12 36 QUANTITY (Thousands of tons) Supply Demand 60 Total Revenue (Thousands 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 cashews between the price levels of $20 and $12 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 cashew market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement

The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. 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 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. 8 St 2 PRICE (Dollars perton) LD 12 36 QUANTITY (Thousands of tons) Supply Demand 60 Total Revenue (Thousands 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 cashews between the price levels of $20 and $12 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 cashew market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. 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 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. PRICE(Dollars perton) 9 3 24 16 0 12 24 36 QUANTITY (Thousands of tons) Demand Supply 48 Total Revenue (Thousands of Dollars) 60 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 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. Before Technological Improvement After Technological Improvement
Transcribed Image Text:The following graph illustrates the market for cashews. It plots the monthly supply of cashews and the monthly demand for cashews. 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 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. PRICE(Dollars perton) 9 3 24 16 0 12 24 36 QUANTITY (Thousands of tons) Demand Supply 48 Total Revenue (Thousands of Dollars) 60 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 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. Before Technological Improvement After Technological Improvement
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