homework, Microeconomics

Assignment Help:
Do not submit more than 1 file in the Canvas submission link.
A few years ago peanut farmers in India experienced a super-bumper crop due
to favorable weather conditions. Initially, the equilibrium price was $3 and the
equilibrium quantity was 500 tons. After the favorable weather conditions the
price of peanuts fell and the quantity increased. The new equilibrium price fell to
$1 and the new equilibrium quantity increased to 700 tons.
i. Draw a relatively inelastic demand curve and a relatively elastic supply curve for
peanuts.
ii. Label the original equilibrium price and equilibrium quantity on your graph.
iii. Label the demand curve, supply curve, the vertical axis, and the horizontal axis.
iv. On your graph show the impact of favorable weather conditions. Use arrows and
label the new curve(s) wherever appropriate.
v. Label the new equilibrium price and equilibrium quantity on your graph.
vi. What is the formula for calculating total revenue? Calculate the total revenue at
the old equilibrium. Now calculate the total revenue at the new equilibrium.
vii. Is the total revenue under the new equilibrium larger or smaller than under the
old equilibrium? Using the concept of price elasticity of demand, explain the
reason for the change in total revenue.

Related Discussions:- homework

Wages, What is the difference between wages and salaries

What is the difference between wages and salaries

What is meant by dumping, What is meant by dumping? Dumping is when a p...

What is meant by dumping? Dumping is when a producing country dumps goods on foreign markets at a price lower than either the price on the home market or below the cost (HL: ma

Advertising budget, analyse the method by which a firm can allocate the giv...

analyse the method by which a firm can allocate the given advertising budget between different media advertisement?

Statistics, please can you explainn what "down 0.1 percentage point on the ...

please can you explainn what "down 0.1 percentage point on the quarter means"?

Elasticity, How do you draw the demand curve Q = 100 - 50P and indicate whi...

How do you draw the demand curve Q = 100 - 50P and indicate which portion of the curve is elastic, which is enelastic, and which is unit elastic?

PPC, could a nations production possibilities curve ever shift inward

could a nations production possibilities curve ever shift inward

Growth rate, how to calculate growth rate in closed economy

how to calculate growth rate in closed economy

Market structure, illustrate and discuss implications of various market str...

illustrate and discuss implications of various market structure(non competitive and competitive) for price determination

What is the sign of the cross price elasticity, Australians are turning to ...

Australians are turning to scooters to combat escalating petrol prices. After a slump in the March quarter this year, demand for scooters was up by more than 7 per cent in the firs

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd