planting and that it will reduce supply and increase the price of competitively
ID: 1240076 • Letter: P
Question
planting and that it will reduce supply and increase the price of competitively produced agricultural goods. Critics argue that because the subsidy is a payment to farmers, it will reduce costs and lead to lower prices. Which argument is correct? Explain. The rent for apartments in New York City has been rising sharply. Demand for apartments in New York City has been rising sharply as well. This is hard to explain because the law of demand says that higher prices should lead to lower demand. Do you agree or disagree? Explain your answer. Illustrate the following with supply and/or demand curves: The federal government "supports" the price of wheat In paying farmers not to plant wheat on some of their land.Explanation / Answer
The law of price vs. demand is not that simple. Many factors play into the results and just because prices rise will not always lower demand. Best example: look what's happening to gasoline demand while prices continue to rise...case closed! Study economics and you'll find the laws of demand can be very interesting, complicated but rarely (like most things in life) simple.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.