Details of this Paper

In the United States, 2007 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically,

Description

solution


Question

In the United States, 2007 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded.;2006 2007;Quantity demand (bushels) 2.2 billion 2.0 billion;Average price (per bushel) $3.42 $4.26;a. Using the midpoint method, calculate the price elasticity of demand for winter wheat.;b. What is the total revenue for U.S. wheat farmers in 2006 and 2007?

 

Paper#18264 | Written in 18-Jul-2015

Price : $22
SiteLock