Answer to Question #322998 in Microeconomics for Yousra

Question

Several years ago flooding along with the Missouri and the mississip rivers destroyed thousands of acres of wheat

a) what information would you need about the market for wheat to assess whether farmers as a group were hurt or helped by the floods?

Answer 1

The information that I would need would be;

The demand of the wheat being greater than the supply

Skyrocketed prices of wheat products

Shut down wheat processing plants

The price elasticity of demand.