Catfish_assignment_-_questions_-_part_1

Catfish_assignment_-_questions_-_part_1 - that demand stays...

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Catfish assignment – part 1 Read the article posted here ( http://www.nytimes.com/2008/07/18/business/18catfish.html? pagewanted=all )  and answer the following questions. 1. What four reasons does the article give for the rising prices of corn and soy?  For each  reason, explain how it affects the supply and demand graph – does it represent a movement  of one of the curves, or a movement along the curve?  In what direction? 2. Based on your answer to question number one, Illustrate the consequences of these four  reasons in a supply and demand graph for corn.  What does your graph predict will happen  to price of corn?  Does this match what the article describes? 3. The article mentions the closing of several catfish farms in the American south.  Assuming 
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Unformatted text preview: that demand stays constant, draw a supply and demand graph for catfish. What do you predict will happen to the price and quantity of catfish sold? 4. What reasons does the article give for hog farmers having an advantage over catfish farmers? What term do we use for the kind of demand that hog farmers are facing? Catfish farmers? 5. Given what we know from question 4, if catfish prices rise by one dollar per unit, and this represents a 20% price increase, what do you expect will happen to the quantity of catfish demanded? If pork prices rise by one dollar per unit, and that constitutes a 20% price increase, what do you expect will happen to the quantity of pork demanded?...
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This note was uploaded on 09/23/2008 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Fall '08 term at Pennsylvania State University, University Park.

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