Low prices in the domestic wheat market cause farmers to switch some sales to export markets. This decision reduces aggregate quantity supplied.

Name: Low prices in the domestic wheat market cause farmers to switch some sales to export markets. This decision reduces aggregate quantity supplied.
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Question

Quizplus · Accepted Answer

Switching sales to export markets does not reduce the aggregate quantity supplied; it merely redirects where the product is sold, from the domestic to the international market.

Low Prices in the Domestic Wheat Market Cause Farmers to Switch