In One Year, the Price of Soybeans Was $3

question 13

Essay

In one year, the price of soybeans was $3.50 a bushel, and the Jones family farm planted 7,500 acres of them. In the following year, although the price of soybeans fell to $3.25 a bushel, the Jones family farm planted 8,200 acres of them. Use the concepts of a shift in the supply curve versus a movement along the supply curve to explain why this increase in soybean acreage does not represent a violation of the law of supply.

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Definitions:

Sales Discounts

A reduction in the price of a product or service that is offered by the seller, often to prompt early payment or bulk purchases.

Sales Returns

Transactions involving the return of sold goods by customers, resulting in a reduction of revenue.

Charge Customer

The process of billing a customer for goods or services provided.

Sales Discounts

A reduction in the price of goods or services offered by a seller to a buyer, usually to encourage prompt payment.