CHALLENGE ACTIVITY Critical Thinking: Analyze Tell why overproduction on farms could lead to lower prices for crops.

History

1 answer:

sashaice [31]3 years ago

7 0

Answer:

It's all about supply and demand. Overproduction of crops means more crops than what is being demanded, and that lowers the price and causes some crops to not even be harvested due to there being too much. Sure, the consumer would love the prices to go lower, but farmers make a living selling the crops they grow and it will make it harder for the farmers to earn a living.

Explanation:

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Use the graph to answer the question that follows.

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When the price of the good is above 50 dollars the quantity demanded would be less than 100 units.

<h3>How does price affect demand?</h3>

The price of a good is known to have an inverse relationship with the quantity of the good that would be bought by its consumers.

The equilibrium price and quantity is at 50 $ and 100 respectively. If the price of the commodity rises above 50, people would demand less for the good.

CHALLENGE ACTIVITY Critical Thinking: Analyze Tell why overproduction on farms could lead to lower prices for crops.​

CHALLENGE ACTIVITY Critical Thinking: Analyze Tell why overproduction on farms could lead to lower prices for crops.