Lancaster lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 80; and it currently pays on the 5th day and takes discounts. lancaster plans to expand, which will require additional financing. assume 365 days in year for your calculations.

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.