ECON Video #4

ECON Video #4 - Michael Blasius 10/4/07 Video #5 Perfect...

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Michael Blasius 10/4/07 Video #5 Perfect Competition and Inelastic Demand: Can the Farmer Make a Profit? The United States entry into World War I prompted farmers to overproduce food in order to help the war effort. Productivity and profits soared during this brief time period when the demand for farmer’s products was adequate. Even after the war it was still easy for all farmers to turn a profit on their goods. When demand for their goods dropped during the after war recession, farmers fell on hard times because they could not turn a profit any longer. Surplus of goods led to dramatic price drops and farmers were forced to give up their farms. Because of a larger shift in supply than in demand, farmers were unable to sell the amount of goods they were produicing and caused many farms to fail. Soon, the dairy farmers were found in a similar situation. Almost all farmers did not sell their milk to people but to milk dealers. These milk dealers had a hold on what price they would
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This note was uploaded on 04/20/2008 for the course ECO 215 taught by Professor Mirimiani during the Spring '08 term at Bryant.

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ECON Video #4 - Michael Blasius 10/4/07 Video #5 Perfect...

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