1. Business
  2. Economics
  3. 14 application demand elasticity and agriculture consider the market for...

Question: 14 application demand elasticity and agriculture consider the market for...

Question details

14. Application: Demand elasticity and agriculture Consider the market for soybeans. The following graph shows the weekly demand for soybeans and the weekly supply of soybeans. Suppose a blight occurs that destroys a significant portion of soybean crops. 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 30 Demand Supply Supply 18 e 12 Cr and 18 30 QUANTITY (Millions of bushels) One of the growers is excited by the price increase caused by the blight because she 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 $15 and $21 per bushel is ▼ , which means demand is between these two points. Therefore, you would tell the grower that her claim is because total revenue 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 irsfve. Before Blight After Blight Total Revenue (Millions of Dollars) Grade It Now Save & Continue Continue without saving

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution