Due to an increase in demand, the market price for soybeans increased by 9.2% between 2016 and 2017, creating the largest premium over corn that had existed in 29 years. Assuming that the soybean market is perfectly competitive and all soybean producers are identical, identify whether each of the following statements are true or false and briefly explain your reasoning.

1. In the short-run, the increased market demand for soybeans will cause the demand curve facing individual soybean farmers to become more inelastic in the short-run.
2. As a result of the increase in the market demand for soybeans, the demand curve facing an individualsoybean farmer will shift upward in the short-run resulting in an increase in profits for existing soybean farmers.
3. In the long-run, the market supply curve for soybeans will shift to the right and the demand curve facing individualsoybean farmers will shift downward relative to what it was in the short-run.