Activity 4 What Are The Factors That Affect The Corn Market
A. 1What are the factors that affect the corn market (i.e. supply curve for corn production and demand curve for corn consumption) ?
The corn market can be negatively affected because of the weather and climate have an impact on the supply of the corn. With a bad weather condition, like drought, the survivability of the corn decreases. The total corn produced the u.s. is facing a large deduce, most of the people will be affected.
However the corn market can be positively affected. Firstly, if the government uses the new bio-technology and agricultural innovations to allow more corn to be produce, to makes sure that the productivity of the corn remain stable even though the u.s. is facing a serious drought. Secondly, there is a great demand in the corn market. The livestock industries relay on the corn heavily, as the people from other developing countries are eating more corn-fed meat. Furthermore the total population of the world is growing at a fast pace, more and more food if required, since corn is a cheaper food as compare to others, the demand of corn is higher. Hence there is an incentive in the farmers to produce more corn.
B. Using a supply-and-demand diagram, analyze and explain the price movements in the corn market.
Prices ($) per corn
*the statistic is made up
When the market demand for a products but the supply could not meet the demand, hence the price of the product will be increase as there is a limited amount of stocks to meet the demand. As shown on the diagram above, the equilibrium price will increase for $2, from supply 1, to $3, in supply 2.
The drought have heavily decreased the productivity of the corn, the price of the corn increased. The demand for the corn in the market is greatly, most of the livestock industries relay on corn heavily, the owners of the farm would be willing to pay more for the corn. In this case, the suppliers were unable to produce more products to meet the demand, hence they were able
The corn market can be negatively affected because of the weather and climate have an impact on the supply of the corn. With a bad weather condition, like drought, the survivability of the corn decreases. The total corn produced the u.s. is facing a large deduce, most of the people will be affected.
However the corn market can be positively affected. Firstly, if the government uses the new bio-technology and agricultural innovations to allow more corn to be produce, to makes sure that the productivity of the corn remain stable even though the u.s. is facing a serious drought. Secondly, there is a great demand in the corn market. The livestock industries relay on the corn heavily, as the people from other developing countries are eating more corn-fed meat. Furthermore the total population of the world is growing at a fast pace, more and more food if required, since corn is a cheaper food as compare to others, the demand of corn is higher. Hence there is an incentive in the farmers to produce more corn.
B. Using a supply-and-demand diagram, analyze and explain the price movements in the corn market.
Prices ($) per corn
*the statistic is made up
When the market demand for a products but the supply could not meet the demand, hence the price of the product will be increase as there is a limited amount of stocks to meet the demand. As shown on the diagram above, the equilibrium price will increase for $2, from supply 1, to $3, in supply 2.
The drought have heavily decreased the productivity of the corn, the price of the corn increased. The demand for the corn in the market is greatly, most of the livestock industries relay on corn heavily, the owners of the farm would be willing to pay more for the corn. In this case, the suppliers were unable to produce more products to meet the demand, hence they were able