Explain in terms of elasticity of demand for farm product

Assignment Help Macroeconomics

Reference no: EM13207575

In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm products why farmers may be better-o¤ when harvests are low even if we ignore the money they receive from the set-aside program.

Reference no: EM13207575

Questions Cloud

What is the steady state level of capital per worker : Now, suppose that initially z=2 and the economy is in the steady state you calculated in part a. . Then suppose that z falls to 1.8 permanently. What is the new steady state? Determine capital per worker znd output per worker in each of the first ..

Determine how would the individual demand curves shift : What is the algebraic equation for this curve d) Now suppose I1 increases to 1100 and I2 decreases to 900. How would the market demand curve shift How would the individual demand curves shift

Distinguish between ethically acceptable means of influencin : Distinguish between ethically acceptable means of influencing another and ethically improper means to influence another.

Observe how the bird activity has changed : It has been some time since your first field report. Observe how the bird activity has changed. Do you see the same species? More males than females, females than males? Has their behavior changed?

Explain in terms of elasticity of demand for farm product : In order to reduce farm output, raise farm prices, and thus raise farm incomes (revenues), the government pays farmers to set aside a portion of their land from production. Using a graph, explain in terms of the elasticity of demand for farm produ..

How much peanut and jelly will david buy : David gets $3 per month as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0:05 per ounce) and jelly (at $0:1 per ounce).

Are functions homogeneous in income and prices : Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). Repeat part (b) for the case in which px..

What price will chevrolet charge once ford has set its price : Game Theory Suppose there are only two car companies, Ford & Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the price and profit data.

Study strategies are textbook use-note taking : study strategies are: 1) textbook use; 2) note taking; 3) test taking; 4) test anxiety; 5) time management; 6) motivation; 7) improving concentration; and 8) procrastination.

User Account

All Pages