Inelastic agricultural demand and innnovation

Related BrainMass Solutions

• Agriculture and the elasticty of demand

  157346 The demand for agricultural output is price inelastic. This means that if farmers, taken collectively, have a bumper crop, they will experience: The demand for agricultural output is price inelastic.

• 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.

• Results of a bumper crop

  This means that people consume about the same quantities of agricultural goods regardless of their prices, and aren't willing to buy a great deal more or less regardless of the price.

• 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.

• Supply and Demand Economics

  More and more consumers added oat bran cereal and muffins to their diets. At the same time, producers switched over to oat bran production from other agricultural crops.

• Fixed Costs of Production and Inelastic Agriculture

  31285 Fixed Costs of Production and Inelastic Agriculture What relationship, if any, can you detect between the fact that the farmer's fixed costs of production are large, and the fact that the supply of most agricultural products is generally inelastic

• Four Market Structures

  Countable such as between 3 to 6 Price elasticity of demand Very Elastic Highly inelastic Elastic but less than perfect competition Inelastic Economic profits Zero in long run. There might be some profits in the short run.

• Short-Run and Long-Run Price Elasticity

  Agricultural commodities are known to have a price-inelastic demand and to be necessities. How can this information allow us to explain why the income of farmers falls (a) after a good harvest?

• Antitrust regulations and income inequality

  Carefully evaluate: "The supply and demand for agricultural products are such that small changes in agricultural supply result in drastic changes in prices. However, large changes in farm prices have modest effects on agricultural output."