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

Exercise 10

Carefully evaluate: "The supply and demand for agricultural products are such that small changes in agricultural supply result in drastic changes in prices. However, large changes in farm prices have modest effects on agricultural output." ( Hint : A brief review of the distinction between supply and quantity supplied may be of assistance.) Do exports increase or reduce the instability of demand for farm products Explain.