Predict the effect of the bumper crop on the price of corn

Reference no: EM131130290

Revenue Effects of a Bumper Crop. Your job is to predict the total revenue generated by the nation s corn crop. Last years crop was 100 million bushels, and the price was $5 per bushel. This years weather was favorable throughout the country, and this years crop will be 110 million bushels, or 10 percent larger than last years. The price elasticity of demand for corn is 0.50.

a. Predict the effect of the bumper crop on the price of corn. Assume that the entire crop is sold this year, meaning that the

Reference no: EM131130290

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