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14. Application: Demand elasticity and agriculture The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. 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 pistachios 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) 24 18 2 bo D 0 12 24 QUANTITY (Thousands of tons) Demand 48 Supply ✓due to the technological improvement. Total Revenue (Thousands of Dollars) 60 Demand 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. Supply Using the midpoint method, the price elasticity of demand for pistachios between the price levels of $15 and $9 per ton is ▼. Thus, you can conclude that the grower's claim is between these two points, demand is meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement

14. Application: Demand elasticity and agriculture The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. 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 pistachios 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) 24 18 2 bo D 0 12 24 QUANTITY (Thousands of tons) Demand 48 Supply ✓due to the technological improvement. Total Revenue (Thousands of Dollars) 60 Demand 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. Supply Using the midpoint method, the price elasticity of demand for pistachios between the price levels of $15 and $9 per ton is ▼. Thus, you can conclude that the grower's claim is between these two points, demand is meaning that because total revenue will Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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14. Application: Demand elasticity and agriculture The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. 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 pistachios 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) 30 24 18 2 6 0 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 pistachios between the price levels of $15 and $9 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 pistachio market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement
Transcribed Image Text:14. Application: Demand elasticity and agriculture The following graph illustrates the market for pistachios. It plots the monthly supply of pistachios and the monthly demand for pistachios. 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 pistachios 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) 30 24 18 2 6 0 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 pistachios between the price levels of $15 and $9 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 pistachio market before and after the technological improvement. Enter these values in the following table. Before Technological Improvement After Technological Improvement
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