2007 was a bad year for growing wheat in the United States, and as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table explains what happened to prices and the quantity of wheat demanded. 2006 2007
Average price (per bushel) $3.42 $4.26
Quantity demands (bushels) 2.2 billion 2.0 billion
1. Determine the price elasticity of demand for winter wheat by using the midpoint method.
2. Calculate the total revenue for U.S. wheat farmers in the 2006 and 2007?