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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 apples between the prices of $10 and $6 per bushel is between these two points. Therefore, you would tell the grower that his claim is ,which mear demand is , because total revenue will as a result of the spell of good weather.

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 apples between the prices of $10 and $6 per bushel is between these two points. Therefore, you would tell the grower that his claim is ,which mear demand is , because total revenue will as a result of the spell of good weather.

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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Consider the market for apples. The following graph shows the weekly demand for apples and the weekly supply of apples. Suppose a spell of unusually good weather occurs, which enables apple producers to generate more apples per acre of land.

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20 Demand 18 Supply Supply 12 Demand 16 24 32 40 QUANTITY (Millions of bushels) PRICE (Dollars per bushel)
Transcribed Image Text:20 Demand 18 Supply Supply 12 Demand 16 24 32 40 QUANTITY (Millions of bushels) PRICE (Dollars per bushel)
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 apples between the prices of $10 and $6 per bushel is , which means , because total revenue demand is between these two points. Therefore, you would tell the grower that his claim is will as a result of the spell of good weather. Confirm your previous conclusion by calculating total revenue in the apple 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: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 apples between the prices of $10 and $6 per bushel is , which means , because total revenue demand is between these two points. Therefore, you would tell the grower that his claim is will as a result of the spell of good weather. Confirm your previous conclusion by calculating total revenue in the apple 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)
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