Asked by Jeremy Quinonez on May 26, 2024
Verified
What is a bumper crop? Explain how fluctuations in farm output lead to large changes in agricultural prices and income.
Bumper Crop
An unusually large harvest of crops in a particular year.
Fluctuations
Variations or changes in a condition or value over time, often observed in economic indicators, prices, or activity levels.
Agricultural Prices
The prices of commodities produced by the agricultural sector, including crops and livestock, which can fluctuate due to various factors.
- Describe the factors contributing to and the consequences of temporary fluctuations in the agricultural sector.
Verified Answer
WJ
wesley jonesMay 29, 2024
Final Answer :
A bumper crop is referring to unusually large outputs from the farm. Farmers have little control over their output due to floods, droughts, unexpected frost, insect damage, and other factors that can lead to a poor crop. While an excellent growing season means bumper crops, with an inelastic demand for farm products, even small fluctuations in output can cause large changes in their price resulting in large changes in farm income. Inelastic demand means that an increase in the quantity sold will lead to a more than proportionate decline in price and total farm revenue will decline, whereas a decline in output will cause a more than proportionate increase in price and farm income.
Learning Objectives
- Describe the factors contributing to and the consequences of temporary fluctuations in the agricultural sector.
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