weekly oybeans na the weekly supply of soybeans. Suppose a spell of unusually good weather occurs, which enables soybean producers to generate more soybeans per acre of land. Show the effect this shock has on the market for soybeans 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. Supply Demand 16 Supply Demand 10 20 30 40 50 QUANTITY (Millions of bushels) One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 $8 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 spell of good weather. PRICE (Dollars per bushel)
weekly oybeans na the weekly supply of soybeans. Suppose a spell of unusually good weather occurs, which enables soybean producers to generate more soybeans per acre of land. Show the effect this shock has on the market for soybeans 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. Supply Demand 16 Supply Demand 10 20 30 40 50 QUANTITY (Millions of bushels) One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 $8 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 spell of good weather. PRICE (Dollars per bushel)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Confirm your previous conclusion by calculating total revenue in the soybean market before and after the spell of good weather. Enter these values in
the following table.
Before Spell of Good Weather
After Spell of Good Weather
Total Revenue (Millions of Dollars)
Transcribed Image Text:Consider the market for soybeans. The following graph shows the weekly demand for soybeans and the weekly supply of soybeans. Suppose a spell of
unusually good weather occurs, which enables soybean producers to generate more soybeans per acre of land.
Show the effect this shock has on the market for soybeans 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.
20
Supply
Demand
16
Supply
Demand
10
20
30
40
50
QUANTITY (Millions of bushels)
One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower 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 $8 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 spell of good weather.
PRICE (Dollars per bushel)
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