One of the growers is pleased with the price increase caused by the pests because he believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market.

Using the midpoint method, the price elasticity of demand for pistachios between the price levels of $10 and $14 per ton is , meaning that between these two points, demand is . Thus, you can conclude that the grower's claim is , because total revenue will due to the pestilence.

Confirm your previous conclusion by calculating total revenue in the pistachio market before and after the pestilence. Enter these values in the following table.

	Before Pestilence	After Pestilence
Total Revenue (Thousands of Dollars)

Answer rating: 100% (QA)

Using the midpoint method the price elasticity of demand Ed for pistachios between the price levels ... View the full answer