Bank CEOs predict that farmland prices will fall by 3.1 percent over the next 12 months. Lower

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Bank CEOs predict that farmland prices will fall by 3.1 percent over the next 12 months. Lower farm income resulted in tighter restrictions on bank loans to farmers.

a. Why does the price of farmland reflect farm incomes? In your answer include a discussion of the demand for and supply of land.

b. Use a graph to show why the price of farmland is expected to fall.

c. Is the supply of farmland perfectly inelastic?

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Microeconomics

ISBN: 9780134744476

13th Edition

Authors: Michael Parkin

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Question Posted: Feb 07, 2024 01:10 PM

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Bank CEOs predict that farmland prices will fall by 3.1 percent over the next 12 months. Lower

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a The price of farmland reflects farm incomes because the income generated from a piece of farmland is one of the primary factors taken into considera...View the full answer

Microeconomics

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