View History Bookmarks Window Help 20 30 QUANTITY (Mitions of busnes the farmers

Question

View History Bookmarks Window Help 20 30 QUANTITY (Mitions of busnes the farmers is exoted by this advancement because now he can sell more crops, which he belleves will increase revenue in in total chis market. As an economics student, you can use elasticities t to determine whether this change in price will lead to an increase Using the midpoint method, the price elasticity of demand for soybeans between demand is between the prices of $t0 and $6 per bushel is between these two points. Therefore, you would tel the farmer .asaresut of the technooecal advancement. p manker before a Confirm your previous cenclusion by calculating total revenue in the soybeas values in the Sollowing table and ater tne technological advancement. Enter these Total Revenue (Millions of Dellars) a, 7 8 6 9 0 W E

Explanation / Answer

Elasticity between 10 and 6 = (35 - 25)/(6-10)*(6+10)/(35+25)

= -10/4*16/60

= -4/6

ed = - 2/3 or 0.66

ed = 0.66, Which means demand is Inelastic , his claim is False/Wrong. Total Revenue will Decrease

If you don't understand anything then comment, I'ill revert back on the same. :)

midpoint
elasticity = (Q2 - Q1)/(Q2 + Q1) ÷ (P2 - P1)/(P2 + P1)

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.