100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
AGEC 315 HW2 Complete Answers $9.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. AGEC 315 HW2 Complete Answer
  4.  
  5. AGEC 315 HW2 Complete Answer

Exam (elaborations)

AGEC 315 HW2 Complete Answers
 0 purchase
  • Course
  • AGEC 315 HW2 Complete Answer
  • Institution
  • AGEC 315 HW2 Complete Answer

AGEC 315 HW2 Complete Answers Scenario 1: Assume that demand increases as projected by the FAO. This would lead to a 60% increase in demand from 2010 to 2050. Another conventional assumption is that land area used for crops will increase by roughly 11% during the period and yields will increa...

[Show more]

Preview 1 out of 3  pages

Document information

  • October 19, 2024
  • 3
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • agec 315 hw2 complete answers

Written for

  • AGEC 315 HW2 Complete Answer
  • AGEC 315 HW2 Complete Answer

Seller

avatar-seller
CertifiedGrades

Reviews received

Content preview

AGEC 315 HW2 Complete Answers

Scenario 1: Assume that demand increases as projected by the FAO. This would lead to a 60% increase in
demand from 2010 to 2050. Another conventional assumption is that land area used for crops will
increase by roughly 11% during the period and yields will increase by 1.25% per year leading to a 64%
total increase in yields. In total, this implies an 82% increase in supply from 2010 to 2050.

Assume that the elasticity of demand is -0.1 and the elasticity of supply is 0.2.Using these parameters,
what is the percent change in the price of food from 2010 to 2050?

Note: Enter your answer in percentage form rounding to 1 decimal place and use positive numbers to
indicate an increase in price and negative numbers to indicate a decrease in price. For example, if price
decreases by 5.137%, then enter -5.1 as your answer.



What would this graph look like? ✔️60-82/0.2+0.1= -73.3



Major increase in supply. Major increase in demand. Which results in a slight decrease in price since it is
a negative number.



Scenario 2: Assume that demand increases 60% as before. But now instead assume that yields only
increase at an annual rate of 0.5% and land used for food does not change. This implies a total increase
in supply of 22% from 2010 to 2050. Yields may grow slower due to climate change, soil erosion,
decreased research expenditures, or lack of irrigation water. Land used for food may not increase
because land expansion is restricted to mitigate climate change or because some land is lost from soil
degradation.

Assume that the elasticity of demand is -0.1 and the elasticity of supply is 0.3.Using these parameters,
what is the percent change in the price of food from 2010 to 2050?

Note: Enter your answer in percentage form rounding to 1 decimal place and use positive numbers to
indicate an increase in price and negative numbers to indicate a decrease in price. For example, if
pricedecreases by 5.137%, then enter -5.1 as you ✔️60-22/0.3+0.1= 95



Major increase in demand. Slight increase in supply. Results in a major price increase.



Scenario 3: Assume that supply increases as in the first scenario for a total increase in supply of 82%. But
now instead assume that demand increases faster than projected and increases by 100% from 2010 to

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$9.99
  • (0)
Add to cart
Added