Share
Explore BrainMass

Demand and Supply for Wheat and Other Market Situations

3. How would each of the following affect the Canadian market supply curve for wheat?
a. A new and improved crop rotation technique is discovered.
b. The price of fertilizer falls.
c. The government offers new tax breaks to farmers.
d. The Prairies suffer a drought.

4. Indicate how you think each of the following would affect demand in the indicated market:
a. An increase in family income on the demand for winter vacations in the Caribbean
b. A study linking beef consumption to heart disease on the demand for hamburgers.
c. A relaxation of immigration laws on the demand for elementary-school places

Solution Preview

How would each of the following affect the Canadian market supply for wheat?

a. A new and improved crop rotation technique is discovered.
Crop rotation techniques will increase wheat yield. As more and more wheat farmers developed the technique, wheat yield will increase. There will be an increase in the market supply for wheat.

b. The price of fertilizer falls.
Fertilizer is one of the important inputs for wheat production Reduction in the price will mean more volume of fertilizers ...

Solution Summary

This is a brief analysis on how the market demand and supply would react in a given situation. Examples given are the wheat market, demand for winter vacation in the Caribbean, demand for hamburgers, and relaxation of immigration laws.

$2.19