Asked by Kymberly Corley on Jun 17, 2024
Verified
Explain why agricultural demand is unstable.
Agricultural Demand
The total request or need for agricultural products, influenced by factors such as population growth, dietary preferences, and biofuel policies.
Unstable
Lacking consistency, predictability, or stability; prone to sudden change or variability.
- Understand the instability in agricultural demand and its causes.
Verified Answer
NI
Nayeli IbanezJun 18, 2024
Final Answer :
The major source of demand volatility for U.S. agriculture is from its dependence on world markets. Since about 35 percent of U.S farm output is exported, changes in weather and crop production in other countries will affect export prices. Better crops abroad, cyclical fluctuations in incomes in Europe or Southeast Asia, changes in foreign economic policy, international politics, and changes in the international value of the dollar can all contribute to demand volatility.
Learning Objectives
- Understand the instability in agricultural demand and its causes.
Related questions
The Major Factor Contributing to Lower Prices for Many Farm ...
The Fundamental Cause of Agricultural Price and Income Instability in ...
A Source of Demand Volatility for Agricultural Products Is ...
List the Three Causes of Short-Run Instability Found in Agriculture
What Is a Bumper Crop? Explain How Fluctuations in Farm ...