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This exercise examines the effect of a new destructive pest in Missouri on the price of soybeans in the United States and daily wages of
This exercise examines the effect of a new destructive pest in Missouri on the price of soybeans in the United States and daily wages of soybean harvesters in Illinois. Assume that buyers of soybeans have no preference for soybean grown in Missouri versus Illinois.
On the following graph, show the effect the new destructive pest in Missouri has on the market for soybeans in the United States by shifting either the demand curve, the supply curve, or both.
Market for Soybeans in the United States 10 O 9 Supply Demand 8 7 6 Supply 5 PRICE (Dollars per bushel) 4 3 Demand 2 0 0 100 200 300 400 500 600 700 800 900 1000 QUANTITY (Millions of bushels of soybeans)Market for Soybean Pickers in Illinois O Supply Demand O Supply WAGE (Dollars per worker) Demand LABOR (Thousands of workers)Step by Step Solution
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