Question

One of the growers is excited by this advancement because now she can sell more crops, which she believes will increase revenue in this market. as an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market.

Answer 1

In order to understand if the innovation will bring about more sales in terms of elasticity of the products, it is necessary to analyze the impact that a price drop would have on the demand for the produce being sold, and to what extent a price decrease will proportionally increase demand.