Ag Econ 4/2

What does a steeper Demand Curve indicate?

A more inelastic demand

Which of the following is listed as an item making up Demand?

Exports

A change in the Supply of a product does not necessarily mean a Change in Demand; instead it may mean a Change in:

Quantity Demanded

If a Demand Curve is flatter (more horizontal) what does that indicate?

A more elastic demand

When the output price for a commodity product is less than the Variable Cost to produce the product, what condition in the market is most likely to occur?

There is excess demand

When we have Excess Demand, how do we expect the market to behave?

Prices move Higher so the market moves to equilibrium

What is the formula of an Excess Supply

Quantity Supplied > Quantity Demanded

Which is true regarding Variable Cost?

They depend on the volume of production, sales or activity

How is Profit calculated?

Profit = (Revenues) - (Total Costs)

Which cost category is described as a “special type of fixed costs” that should generally be ignored in many decision making contexts?

Sunk Costs

To operate in the short term, a firm should at least be able to cover its:

Variable Costs

An increase in supply is represented by a movement of the Supply curve:

To the right

What occurs at the combination of Price and Quantity in a market when there is a balance in quantities provided for sale by willing and able sellers and desired by willing and able buyers?

Market clearing equilibrium

Which of these is an item that impacts the supply curve?

Number of Sellers

Basis was described in class was defined as what?

(Local Cash Price) - (Futures Price on the Board)

Which of the following Futures Market Quotes ends in “a quarter of a cent?”

1325’2

Which of the following AGRB Course Outcomes may be addressed with Futures Market discussions?

All of the above

To have a Future Contract Sale you need what?

Both (a) and (b)