If a price of corn is $3.00 a bushel, 5,000 bushels would be demanded. If the price

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If a price of corn is $3.00 a bushel, 5,000 bushels would be demanded. If the price rises to $4.00 a bushel, 4,000 bushels would be demanded.

a. What is the (arc) price elasticity of demand?

b. Based on this answer, if the price of corn rose to $5.00 a bushel, what would be the demand for corn?

c. If the price of corn decreased from $4.00 to $3.00 a bushel, what would be the change in total revenue for sellers of corn?

d. If the price of corn increased from $4.00 to $5.00 a bushel, what would be the change in total revenue for sellers of corn?

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Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

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Posted Date: Jul 17, 2022 05:07 AM

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If a price of corn is $3.00 a bushel, 5,000 bushels would be demanded. If the price

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Price of Carn 3 4 Hi Price b Price Price Drawing groph of Demand ve 6 4 5 3 4000 5000 5000 elas... View the full answer

Microeconomics Principles, Problems and Policies

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