In the United States, 2022 was a bad year for growing wheat. As the wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded. 2021 2022 Quantity demanded (bushels) 2.3 billion 1.7 billion Average price (per bushel) $4.02 $4.98 a. Using the midpoint method, calculate the price elasticity of demand for winter wheat. Record your answer as an absolute value. b. What was the total revenue for U.S. wheat farmers in 2021, to two decimal places? $ billion What was the total revenue for U.S. wheat farmers in 2022, to two decimal places? $ billion
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\[ \text{Percentage change in quantity demanded} = \frac{Q_2 - Q_1}{\frac{Q_2 + Q_1}{2}} \times 100 \] Where \( Q_1 = 2.3 \) billion bushels (2021) and \( Q_2 = 1.7 \) billion bushels (2022). \[ \text{Percentage change in quantity demanded} = \frac{1.7 - Show more…
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Andrew D.
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