Week 2 - Assignment - Rhaburn

Week 2 - Assignment - Rhaburn - Week 2: The Elasticities of...

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Week 2: The Elasticities of Demand and Supply 2010 Before the farmer can make a decision on whether they will use their soybean farms to produce more or less corn, they need to take into account the supply determinants. Supply determinants are based on resource prices, production technology , other prices, sellers' expectations, and number of sellers. The farmer will need to analyze if the prices paid for the use of labor , capital , land , and entrepreneurship will affect production cost and the ability to supply more corn. In the case that corns have now become a demanding commodity, the buyer might be inclined to pay more for the corn oil. That is if the market does not flood with the supply of corn from other farmers as well. After considering resource price he needs to take into account production technology. The production technology would be information on technique available to the farmer on producing a larger output of the corn oil. Other prices will also play a role in his decision making process, as he need to determine if he will substitute some of the
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Week 2 - Assignment - Rhaburn - Week 2: The Elasticities of...

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