This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Typically, beef cattle producers will bid the price of corn up until the corn market reaches a new equilibrium at a higher price. This higher price of corn may cause hog producers to cut back on hog production because of the higher price of corn, thus freeing corn supplies to beef cattle producers. The power of prices to efficiently allocate resources and commodities never ceases to amaze me. And the fact that prices are determined by individuals interacting with each other in a market is truly remarkable....
View Full Document
- Fall '10