This exercise examines the effect of a excellent harvest in Missouri on the price of soybeans in the United States and daily wages of soybean harvesters in Illinois. Assume that buyers of soybeans have no preference for soybean grown in Missouri versus Illinois.

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ChapterP2: Microeconomics Policy Issues
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Problem 6KC
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B1 

Subject - economics 

 

This exercise examines the effect of a excellent harvest in Missouri on the price of soybeans in the United States and daily wages of soybean
harvesters in Illinois. Assume that buyers of soybeans have no preference for soybean grown in Missouri versus Illinois.
On the following graph, show the effect the excellent harvest in Missouri has on the market for soybeans in the United States by shifting either the
demand curve, the supply curve, or both.
PRICE (Dollars per bushel)
9
1
0
WAGE (Dollars per worker)
Market for Soybeans in the United States
Supply
Demand
100 200 300
QUANTITY (Millions of bushels of soybeans)
500 800 700 800 900 1000
Based on the graph for the market for soybeans in the United States, the excellent harvest has caused the price of soybeans in the United States to
The following graph shows the daily market for soybean pickers in Illinois.
Show the effect of the change in the price of soybeans in the United States on the market for soybean pickers in Illinois by shifting either the deman
curve, the supply curve, or both.
Market for Soybean Pickers in Illinole
Demand
Supply
Supply
Demand
LABOR (Thousands of workers)
Demand
Supply
As a result of the change in the price of soybeans, the wage level for soybean pickers in Illinois
|4
Transcribed Image Text:This exercise examines the effect of a excellent harvest in Missouri on the price of soybeans in the United States and daily wages of soybean harvesters in Illinois. Assume that buyers of soybeans have no preference for soybean grown in Missouri versus Illinois. On the following graph, show the effect the excellent harvest in Missouri has on the market for soybeans in the United States by shifting either the demand curve, the supply curve, or both. PRICE (Dollars per bushel) 9 1 0 WAGE (Dollars per worker) Market for Soybeans in the United States Supply Demand 100 200 300 QUANTITY (Millions of bushels of soybeans) 500 800 700 800 900 1000 Based on the graph for the market for soybeans in the United States, the excellent harvest has caused the price of soybeans in the United States to The following graph shows the daily market for soybean pickers in Illinois. Show the effect of the change in the price of soybeans in the United States on the market for soybean pickers in Illinois by shifting either the deman curve, the supply curve, or both. Market for Soybean Pickers in Illinole Demand Supply Supply Demand LABOR (Thousands of workers) Demand Supply As a result of the change in the price of soybeans, the wage level for soybean pickers in Illinois |4
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