Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 13

FARM COMMODITY PRICES-SUPPLY AND DEMAND IN ACTION The U.S. Department of Agriculture, www.nass.usda.gov/ , publishes charts on the prices of farm products. Go to the USDA home page and select "Find charts and maps" and then "Agricultural Prices." Choose three farm products and determine whether their prices (as measured by "prices received by farmers") have generally increased, decreased, or stayed the same over the past 3 years. In which of the three cases, if any, do you think that supply has increased more rapidly than demand In which of the three cases, if any, do you think that demand has increased more rapidly than supply Explain your reasoning.