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Using the midpoint method, the price elasticity of demand for corn between the prices of $10 and $8 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that her claim is , because total revenue will as a result of the spell of good weather.

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Answer and Explanation:

The computation is shown below:

Price elasticity of demand is

= (Q2 - Q1 ÷ {(Q2 + Q1) ÷ 2}) × {(P2 - P1 ÷ 2) ÷ (P2 + P1)}

where,

Q2 = 30

Q1 = 25

P2 = $10

P1 = $8

Now put these values to the above formula

So, the price elasticity of demand is 0.82

So, Demand is inelastic.

Her claim is correct.

So, the total revenue will Decrease.

Total revenue at the time of prior smell of good weather

= 10 × 25

= 250

And, the Total revenue at the time of after smell of good weather

= 8 × 30

= 240

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Therefore, you would tell the grower that her claim is correct because total revenue will decrease as a result of the spell of good weather.

Based on the complete question, it should be noted that the price elasticity of demand is 0.82. in this case, since the price elasticity of demand is less than 1, it's an inelastic demand.

Also, it implies that her claim is correct. The total revenue from the information given will then be:

= 10 × 25 = 250 and 8 × 30 = 240.

Therefore, there's a decrease in revenue.

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