(Solved): 14. Application: Demand elasticity and agriculture The following graph illustrates the market for w ...

14. Application: Demand elasticity and agriculture The following graph illustrates the market for walnuts. It plots the monthly supply of walnuts and the monthly demand for walnuts. Suppose new gathering technology is invented, allowing arowers to produce more crops using the same amount of resources. Show the effect this shock has on the market for wainuts by shifting the demand curve, supoly curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves wil snap into position, so if you try to move a curve and it snaps back to its original position, just drap it a little farther. Several growers are hapay with this advancenent io technology because now they can seil more crops, which they believe wif lead to increasek in revenue. UHing edasticities, you will bo atile to determine whether this price change will lead to a fite or tall in total menue in this market. Using the midpoint methed, the pice elasticify didemand for walects between the poice levels of 120 and 112 per ton in these two points, deenand is. Thay, you can canclude that the orewer's claimi is because total trvense niif due to the technotogical improverment 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 walnuts between the price levels of $$\$20$$ and $$\$12$$ per ton is , meaning that between these two points, demand is Thus, you can conclude that the grower's claim is due to the technological improvement. Confirm your previous conclusion by calculating total revenue in the walnut market before and after the technological improvement. Enter these values in the following table.