Purchase Solution

Determining whether prices of farm products have changed

Not what you're looking for?

Ask Custom Question

The U.S. Department of Agriculture, http://www.usda.gov/nass, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices. Choose three farm products of your choice and determine whether their prices (as measured by "prices received by farmers") have generally increased, decreased, or stayed the same over the past 3 years. In which of the three cases, if any, do you think that supply has increased more rapidly than demand? In which of the three cases, if any, do you think that demand has increased more rapidly than supply? Explain your reasoning.

Purchase this Solution
Solution Summary

Determining whether prices of farm products have changed in past three years due to shifts in supply or demand.

Solution Preview

In 2003 the price of corn was about $2.40 a pound, and now it is $2.25. This would suggest that supply has increased more rapidly than demand. If you graph the demand and supply curves, you can see that when the supply ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Farming and the economy

    276104 Farming and the economy Details: You are the owner of a successful family farm in the Midwest. Your family has owned this farm for 80 years and 5 generations of your family have lived, worked and died there.

  • Results of a bumper crop

    280125 Results of a bumper crop A bumper crop of farm products causes: a) only a slight decline in the price of farm products because the demand for farm products is income inelastic.

  • Von Thunen's Model

    As prices of crops or animal products change, the farmer will decide whether to grow more or less of a particular item. This has the effect of changing the band width on the model; broader if demand is greater, narrower if less.

  • The impact of farm support programs to the economy

    Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on airy prices. What impact do you suppose farm subsidies are likely to have on the following: a. Housing prices b.

  • market supply and demand curves for agricultural products

    Suppose that supply increased from S0 to S1 and that demand is inelastic over the relevant range of prices.

  • Subsidies & Floors and Ceilings

    Beginning in 1985, Congress established "target prices" for agricultural products and authorized "deficiency payments" to farmers when the market price fell below the target price.

  • Starting a Small Farm

    The difference might be in logistics and that on a small farm, the products are produced first, then sold, but the essential of a sound business plan is essential to both. HAVE A GREAT DAY!

  • Good/bad paradox in agriculture

    174585 If the demand for farm products were elastic rather than inelastic, would the good/bad paradox still exist? If the demand for farm products were elastic rather than inelastic, would the good/bad paradox still exist? Why or why not.

  • Government subsidies for farmers: small vs large farms

    To a large degree subsidies in my opinion have a negative effect on all sizes of farms. In fact, the use of subsidies goes against the concept of free enterprise, and allowing for market forces to dictate prices.

View More Related Solutions