Apply supply and demand analysis to a product, commodity, or service for an agriculture, food, and natural resources (AFNR) business.

Application should include

  • a reinforcement of economic terms, to include
    • market
    • consumption
    • price
    • consumer surplus
    • elasticity
    • supply curve
    • demand curve
    • indifference curve
    • scarcity
    • disequilibrium
  • the relationship among supply, demand, and price equilibrium (i.e., for an agricultural product, service, or commodity).

Process/Skill Questions:

  • How could a graph show supply and demand?
  • How does supply and demand influence price?
  • What factors affect the price of a commodity and the quantity demanded?
  • How do substitutes, labor costs, and production technology affect the quantity of a product, commodity, or service supplied in the market?