Rather than spending $100 today on paint today, you decide to save the money until next year, at which point you will use it to paint your room. If a can of paint costs $10 today, how many cans will you be able to buy next year if the nominal interest rate is 21 percent and the expected inflation rate is 10 percent?

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.