Reference no: EM133131836

Clubroot is a current disease concern in canola production in western Canada. Canola is a very important crop in western Canada, both in terms of area and economic value. Based on the economics of production and supply, answer the following questions using economic principles.

A) The main tools that have been available to producers are focused on prevention.( e.g., rotations, equipment sanitation). Producers who have a clubroot infestation have limited options, being forced to take a break from canola production in the infested field. Bio-pesticide as potential future developments to control clubroot infestations. Limes as a potential agent for controlling clubroot. Given this information, from an individual perspective, how would the risk of clubroot affect the decision-making regarding canola production? In other words, if clubroot is a significant concern, what aspects (if any) of the basic producer problem would be affected and in what ways?

B) Suppose that prevention or control of clubroot were to become a practical consideration for a majority of canola producers in western Canada. what effect would this have on the supply of canola? would this effect represent a change in supply quantity or a shift in supply, or both? Why?

C) Would you expect the scenario represented in part B of this question to have any impact on the supply function for wheat? why or why not?