Asked by amirhossein jafarikermanshahi on Jun 18, 2024
Verified
An agricultural economist reports that corn prices are very high this year and that corn growers are earning substantial profits. He concludes that government action is needed to direct more farmers to grow corn. Is such action necessary? Why or why not?
Agricultural Economist
A professional specializing in the study and application of economic principles within the agricultural sector, focusing on maximizing efficiency and productivity.
Corn Prices
The cost at which corn is bought or sold, which can fluctuate based on factors like supply, demand, and market conditions.
- Gain an understanding of the diverse factors impacting supply and demand within the market.
- Explore the influence of demand and supply modifications on equilibrium in the market.
Verified Answer
RG
Randi GovantesJun 18, 2024
Final Answer :
No government action is necessary to direct farmers to grow more corn. Farmers will see how profitable corn growing is and will plant next year's crops accordingly. We would expect a lot more farmers to grow corn..
Learning Objectives
- Gain an understanding of the diverse factors impacting supply and demand within the market.
- Explore the influence of demand and supply modifications on equilibrium in the market.
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