The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 23

Figure 3-3 shows a hypothetical demand curve for strawberries.
(a) What price per case would maximize the gross receipts of strawberry growers? [Peek at part (d) of this question rather than waste too much time trying all sorts of different prices. The price that maximizes gross receipts will be found at the midpoint of a straight-line

demand curve when the curve is extended to the axes. If you see why, good. If not, it's a bit of knowledge with only academic usefulness anyway.]
(b) If the price of strawberries is determined by the total quantity harvested in conjunction with the demand, what size crop will result in the price quoted in part (d)?
(c) What would the gross receipts of strawberry growers be if the crop turned out to be 30,000 cases?
(d) Can you prove that the demand for strawberries is elastic above a price of $24 per case and inelastic below that price?
(e) If strawberry growers can make more money by selling fewer than 30,000 cases, why would they ever market that much? Why wouldn't they destroy some of the crop rather than "spoil the market?"