00:01
We're given the market for walnuts.
00:14
New gathering technology is invented.
00:17
Growers can produce more crops using the same amount of resources.
00:20
So we need to show what will happen.
00:22
We should show the supply curve shifting to the right because now they can produce more at each price.
00:32
Several growers are happy with advancement.
00:34
They can sell more crops.
00:36
That will lead to increases in revenue.
00:39
Then we need to use elasticities to determine if this will actually happen.
00:46
We need the price elasticity of demand for walnuts between the given price levels, $20 and $12.
00:56
So now what we're going to do is we go to the demand curve and then we're going to find $20.
01:07
So you'll see that that would be the initial equilibrium.
01:14
And then we need to find $12.
01:16
So that's where the supply curve crosses this axis.
01:23
And then we will just need to get the amount demanded...
