PROBLEMS & EXERCISES
SOLUTIONS & DISCUSSION
UNIT FOUR (FOR EXAM 4)
Unit Four: Assignment 1: Web Problem U4-A1-P1
Using supply and demand curves, demonstrate how each of the following situations would effect soybean farmers:
- Household disposable income increases steadily over a ten-year period.
- An extended drought strikes the Midwest for five years.
- A new type of pesticide is developed that increases soybean yields by 25 percent.
- The U.S. economy goes into a recession for two years.
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