How does drought affect the supply of agricultural products?
A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied; conversely, especially good weather would shift the __________________ . If an increase in the price of Good X causes a decrease in the demand for Good Y, we can conclude that:
What will encourage farmers to increase the quantity of wheat supplied?
Interpret the following statement: “An increase in the price of wheat will encourage farmers to increase the quantity of wheat supplied to the market.” The statement is correct. A severe freeze has once again damaged the Florida orange crop.
What causes a change in the quantity demanded?
A change in quantity demanded is caused by a change in the price of the product and is represented as a movement along a stationary demand curve. A change in demand is caused by a change in tastes, income, price of a related good, number of consumers or expectations and is illustrated as a horizontal shift of the entire demand curve.
How does the price of wheat affect the supply of oats?
Wheat and oats are also substitutes on the supply side, so the increase in the price of wheat reduces the supply of oats.
What is demand curve?
In economics, the demand for a good refers to the amount of the good that people: will buy at various prices. The demand curve for a typical good has a (n): negative slope because some consumers switch to other goods as the price rises. The nature of demand indicates that as the price of a good increases:
What is Obama’s order to round up farm workers?
A report surfaced lately that President Obama has given the order to federal agents to “round up” farm workers that have illegally entered the U.S. and deport them. The impact of this order on the market for vegetables will be a leftward shift of: the supply curve.