Question
How would you compare these two? As I went to the U.S. Department of Agriculture's website, I choice to check the agricultural Latest price from
How would you compare these two?
As I went to the U.S. Department of Agriculture's website, I choice to check the agricultural Latest price from February 26 2021. After checking the PDF documents, I had found that the January Price received index id down 1.4 percent. The farm product that I selected is prices received for Oats in January of 2020 the dollar price per bushel was 2.84. December of 2020 this dropped to 2.69 per bushel and then hit a high a 2.95 dollars per bushel in January 2021 I do think that demand increased more rapidly for this product because people wanted basic food in their diets during the pandemic and I believe that oats is one. But the supply was shortcoming because farmers were not able to send as much product because of the pandemic. If the government put a price ceiling on the oats, I would be somewhere around 2.82 and would stop inflation if there was any. I don't think that the government should do that on such a small item but if prices skyrocketed, I believe 2.82 would be a good price.
https://downloads.usda.library.cornell.edu/usda-esmis/files/c821gj76b/r207vg444/gh93hs33r/agpr0221.pdf
If the government had applied a price ceiling to hays bales it would have caused the price of hay to lower. This would be positive for the consumer which can a higher demand in quantity but lowers the quantity of hay that is supplied. This would result in the economy having a shortage on hay. With this shortage consumers would enjoy paying lower cost. With the consumers who cannot afford these prices would them become in more need of hay, which could affect the rationing or even a black market.
USDA. (2021,) Agricultural Prices. (2021, February 21). Https://Www.Nass.Usda.Gov/.https://downloads.usda.library.cornell.edu/usda-esmis/files/c821gj76b/r207vg444/gh93hs33r/agpr0221.pdf
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