To increase revenue, the provincial government ofSaskatchewan has decided to open up millions of acres ofpreviously unavailable land, and to rent it to farmers. At thesame time, world corn prices increase.Please illustrate the effect of both of these events in theaccompanying graph by shifting the supply curve and/ordemand curve.For profit maximizing farmers, which factor will determinehow many acres of land to rent?People will rent as many acres as possible.Rent as long as the rental price is less than marginalprofit.Each farmer will have his or her own reasons forchoosing how much land to rent.O Individuals will rent up until the price of an acre ofland is equal to the value of the marginal product, ormarginal revenue product, of an acre of land.IncorrectRental rateIncorrectQuantity of land (acres)

In economics, the concepts of demand and supply are fundamental in understanding how markets…

To increase revenue, the provincial government of Saskatchewan has decided to open up millions of acres of previously unavailable land, and to rent it to farmers. At the same time, world corn prices increase. Please illustrate the effect of both of these events in the accompanying graph by shifting the supply curve and/or demand curve. For profit maximizing farmers, which factor will determine how many acres of land to rent? O People will rent as many acres as possible. O Rent as long as the rental price is less than marginal profit. Each farmer will have his or her own reasons for choosing how much land to rent. O Individuals will rent up until the price of an acre of land is equal to the value of the marginal product, or marginal revenue product, of an acre of land. incorrect Rental rate Incorrect Quantity of land (acres) S

To increase revenue, the provincial government of Saskatchewan has decided to open up millions of acres of previously unavailable land, and to rent it to farmers. At the same time, world corn prices increase. Please illustrate the effect of both of these events in the accompanying graph by shifting the supply curve and/or demand curve. For profit maximizing farmers, which factor will determine how many acres of land to rent? O People will rent as many acres as possible. O Rent as long as the rental price is less than marginal profit. Each farmer will have his or her own reasons for choosing how much land to rent. O Individuals will rent up until the price of an acre of land is equal to the value of the marginal product, or marginal revenue product, of an acre of land. incorrect Rental rate Incorrect Quantity of land (acres) S

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...

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