Suppose farmers found a new market for their wheat--the people in another country, for instance. What effect would that have on price? Why?
i'm guessing it has to do with supply and demand, if that helps..
thank you in advance!
2006-12-04 06:51:23 · 4 answers · asked by mermaid 2 in Education & Reference ➔ Homework Help
People in other countries are looking to buy wheat already so it would stay the same.♠
2006-12-06 16:05:40 · answer #1 · answered by # one 6 · 0⤊ 0⤋
There is not a limited supply of wheat. If the farmers found a new market for it then the price may drop. Why? The farmers would then plant more wheat. It is more efficient to plant 500 acres than 100 acres. Still if the demand was high enough that the available land was overused then prices would go up.
2006-12-04 15:14:08 · answer #2 · answered by shadouse 6 · 0⤊ 0⤋
I am thinking that the price will increase due to a decrease in supply or scarcity of food here, while the demand remains the same. However, if the amount of supply continues to be the same, the price should remain the same.
2006-12-04 15:05:41 · answer #3 · answered by Samster 3 · 0⤊ 1⤋
i would assume that the price would go up because of tarrifs (you know what those are don't you.)
but then again i don't know because it's wheat and it's so essential to food making that there might be government incentive programs for selling to impoverished nations.
good question.
2006-12-04 15:06:35 · answer #4 · answered by hey_finny 3 · 0⤊ 1⤋