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

Real interest rate, Real Interest Rate: Interest rate on a loan, adjusted f...

Real Interest Rate: Interest rate on a loan, adjusted for rate of inflation. Real interest rate represents real burden of an interest payment. Real interest rates should be positiv

Microeconomic international policy, Ask questi‘Social welfare functions emb...

Ask questi‘Social welfare functions embody a normative conception of the relative importance of equity and efficiency’. With the aid of diagrams, illustrate and explain this propos

Consumer behaviour, identify three factors to criticize the theory of consu...

identify three factors to criticize the theory of consumer behavior or utility theory

Revise business plans to incorporate appropriate cha, Revise business plans...

Revise business plans to incorporate appropriate changes.

Demand-pull inflation, The average price level has increased at a relativel...

The average price level has increased at a relatively rapid rate since 2008 even though the deep recession that UK experienced in 2008/09. The growth in the price level has been dr

Need of reforms - economic policies, NEED OF REFORMS: Presently Govern...

NEED OF REFORMS: Presently Government offices generate  a lot of paper work in the form of reports/returns, extended file movement in many cases for clarification of some mino

Facilitating restructurings, Facilitating Restructurings- rationale in era ...

Facilitating Restructurings- rationale in era of globalisation: There has been some progress in the last few years in efforts to improve the framework for sovereign restructur

Concepts of education and economic development - education, Normal 0 ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Chemistry project help, I have a chemistry project which is title: "combati...

I have a chemistry project which is title: "combating desertification" so I have to come up with a practical solution to stop desertification or limit the spreading of deserts.. Is

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