Article Summary
According to the Department of Agriculture, net farm income will grow to a record high of $120.6 billion in 2013, up from the previous high mark in 2011 and after adjusting for inflation, its second highest level since 1973. Net cash income, however, is expected to fall by 10 percent due to unsold inventories. Exports of chickens and milk are expected to rise by 3 percent and 17 percent, respectively.
Source: Ros Krasny, "Farm income poised for record 2013: USDA," Reuters, August 27, 2013.
-Refer to the Article Summary. All else equal, the increase in demand for chicken and milk exports will ________ the market prices for these exports and ________ economic profit in these markets.

Question

Quizplus · Accepted Answer

An increase in demand for chicken and milk exports will increase the market prices for these exports and increase economic profit in these markets.

Article Summary According to the Department of Agriculture, Net Farm Income Will