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Unformatted text preview: the law of supply, farmers are producing less because of drop of commodities. Concept 2 Producer Surplus Explanation A surplus creates a downward pressure on the price. In this article, farmers have a large surplus creating a downward pressure on prices. Concept 3 Opportunity Cost Explanation In this article it shows that the farmers production is inefficient. For an example, dairy farmers are not producing as much as they would like, so therefore they have to slaughter their cattle in order to down size their business. 3. Attach the original article to this sheet....
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This note was uploaded on 05/12/2010 for the course ECON 2004 taught by Professor Daniels during the Spring '10 term at Marquette.
- Spring '10