Predict the effect of the bumper crop on the price

Reference no: EM13279993

Your job is to predict the total revenue generated by the nations 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 crop. the price elasticity of demand is -0.5. predict the effect of the bumper crop on the price of corn. Assume that the entire crop is sold this year, meaning that the price of supply is zero. Illustrate with complete graph.

Reference no: EM13279993

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