Illustrate the net change in farmers total revenue

Reference no: EM131003963

1. (C a s e S tudy: The Market for Food and "the Farm Problem") Interpret this diagram as showing the market demand and supply curves for agricultural products. Suppose that demand is inelastic over the relevant range of prices and supply increased from S0 to S1.What areas in the figure would you use to illustrate the net change in farmers' total revenue as a result of the increase in supply?

2. (Cross-Price Elasticity) Rank the following in order of increasing (from negative to positive) cross-price elasticity of demand with coffee. Explain your reasoning.

Reference no: EM131003963

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