The diagram above illustrates the demand for and supply of maize. Use the information in the diagram to answer the questions that follow (a) (i) What is the...
Question 1 Report
The diagram above illustrates the demand for and supply of maize. Use the information in the diagram to answer the questions that follow
(a) (i) What is the total revenue of the farmer at the initial equilibrium?
(ii) Calculate the total revenue of the farmer if the supply curve shifts to S\(_1\)S\(_1\)
(b) What change occurs in the total revenue of the farmer when the price falls from 100 Dollars to 40 Dollars per tonne?
(b) (i)Use the figures in the diagram to determine the price elasticity of demand for maize (u) Interprete your answer.
(c) Give two reasons for the shift of the supply curve from SS to S\(_1\)S\(_1\)