How does a decrease in the demand for wheat ultimately lead to normal profits for wheat growers in the long run?
What will be an ideal response?
If the demand for wheat decreases, the price of wheat falls and many wheat farmers incur economic losses. These losses lead to some farmers shutting down their operations. As these farmers exit the market, the supply of wheat decreases. A decrease in the supply of wheat pushes wheat prices back u
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Which of the following examples shows a resource being used?
a. Japan exports cameras. b. Wilson produces tennis racquets. c. Jessica earns $50 dollars. d. Adam adds vanilla to the cookie dough.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher