Forecast effect of bumper crop on price or corn suppose

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Your job is to predict the total revenue generated by the nation's corn crop. Last year's crop was 100 million bushels, and the price was $5 per bushel. This year's weather was favorable throughout the country, and this year's crop will be 110 million bushels, or 10 percent larger than last year's. The price elasticity of demand for corn is 0.50.
a. Predict the effect of the bumper crop on the price or corn. Assume that the entire crop is sold this year, meaning that the price elasticity of supply is zero. Illustrate with a complete graph.
b. Predict the total revenue from this year's corn crop.
c. Did the favorable weather increase or decrease the total revenue from corn? Why?

Reference no: EM13451649

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