A number of the growers are concerned about the price decrease initiated by the stretch of favorable weather conditions, as they believe it will lead to decreased 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 almonds between the price levels of $10 and $8 per ton is0.82 , 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 favorable weather conditions.