a) At the present equilibrium, what is the total revenue received by farmers (in millions of dollars)?$b) Suppose that the oat industry had a very good harvest and the supply increased by 45 million bushels. Draw the new supply curvein above shown graph. Plot only the endpoints of the curve above and position those points on the edges of the graphing area.c) What will be the new total revenue received by farmers (in millions of dollars)?$d) What does this suggest about the elasticity of demand for oats?Demand is elastic The graph below shows the market for oats.Price per bushel109876LO54321015453075105 135120 1506090Quantity per period (in millions of bushels)DToolsS₂(i)

Price elasticity of demand is measured by dividing the ratio of the percentage change in quantity…

Answered: The graph below shows the market for…

The graph below shows the market for oats. Price per bushel 10 9 8 7 6 5 4 3 2 1 0 15 60 75 105 135 90 Quantity per period (in millions of bushels) 45 30 120 150 D Tools 52 Ⓡ

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

a) At the present equilibrium, what is the total revenue received by farmers (in millions of dollars)?
$
b) Suppose that the oat industry had a very good harvest and the supply increased by 45 million bushels. Draw the new supply curve
in above shown graph. Plot only the endpoints of the curve above and position those points on the edges of the graphing area.
c) What will be the new total revenue received by farmers (in millions of dollars)?
$
d) What does this suggest about the elasticity of demand for oats?
Demand is elastic

The graph below shows the market for oats.
Price per bushel
10
9
8
7
6
LO
5
4
3
2
1
0
15
45
30
75
105 135
120 150
60
90
Quantity per period (in millions of bushels)
D
Tools
S₂
(i)

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