Driving 15000 miles, split between city and highway, will require (roughly) 500 gallons in a Corolla but only 325 gallons for a Prius. Say that the government introduces a plan to improve fuel economy in the US as much as if people were moving from Corollas to Priuses. If 10% of all cars (i. e. 24 million of the 240 million out there in 2011) upgrade in this way, and each person drives 15000 miles per year as described above (and all gas comes from the amount imported), then by what percent would US imports of petroleum decrease

One of the growers is excited by this advancement because now he can sell more crops, which he 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. using the midpoint method, the price elasticity of demand for soybeans between the prices of $5 and $4 per bushel is , which means demand is between these two points. therefore, you would tell the grower that his claim is because total revenue will as a result of the technological advancement.