Many Southern farmers face a choice between planting peanuts or cotton. In 2014, farmers anticipated higher prices for cotton. In the market for peanuts in 2014, there would be ________ in the supply of peanuts, which leads to ________ in the price of peanuts and ________ in the quantity of peanuts.

Question

Quizplus · Accepted Answer

When farmers anticipate higher prices for cotton, they are likely to allocate more land to cotton and less to peanuts, leading to a decrease in the supply of peanuts. This decrease in supply results in an increase in the price of peanuts and a decrease in the quantity of peanuts available in the market.

Many Southern Farmers Face a Choice Between Planting Peanuts or Cotton