Answer to Question #167840 in Microeconomics for Bubblys

Question

During the late 1800s, U.S. farmers experienced tough economic times. Prices for their wheat and corn were falling, and farmers’ incomes were falling too. Many farmers protested to the government, asking for help. One supporter of Midwestern farmers, named Mary Ellen Lease (known as “the Kansas Pythoness”) encouraged farmers to “raise less corn and raise more hell.” The “raise more hell” part of her advice was to protest conditions to the government, but the “raise less corn” part of her advice was more practical. Why would raising less corn improve the financial condition of farmers?

Answer 1

$$Solution$$

Farmers in the US faced financial difficulties due to the problem of agricultural overproduction i.e due to opening of the Great plains to plow, introduction of farm machinery and new farming techniques necessitated overproduction. Because of this, more crops were dumped in the American market and this depressed the prices farmers could demand for their produce. Therefore, due to demand and supply effect, producing less corn could increase the demand for corn and this will increase the prices the farmers will demand for their product.