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I say the farmer would prefer a market condition in which they are unfavorable, and most farmers harvest small crops because they can sell their
I say the farmer would prefer a market condition in which they are unfavorable, and most farmers harvest small crops because they can sell their wheat for a higher price, increasing their profits. In such a scenario, the overall wheat supply would be limited due to adverse conditions, resulting in a lower total quantity of wheat entering the market. The textbook defines quantity supply as "the amount of a good that sellers are willing and able to sell" (Mankiw, 2021). This limited supply would likely drive up the market price for wheat. As a result, the farmer, who can harvest 3,000 bushels, could sell each bushel at a higher price, maximizing his profit. In contrast, in a market where conditions are favorable and many farmers harvest large crops, the increased supply could lead to a surplus, causing the market price to decrease. In such a situation, the farmer might receive a lower cost per bushel, reducing his overall revenue despite having a larger harvest. thoughts
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