Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 10

FARM COMMODITY PRICES-SUPPLY AND DEMAND IN ACTION The U.S. Department of Agriculture, www.nassusda.gov , publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices (under Economics). 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 three 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.