AGEC 2003 : AGEC 2003 Exam 1 Review
Document Summary
Know differences in quantities demanded and change in demand. Change in demand cannot be intributed to change in price. Opportunity costs- cost of alternative opportunities that you forgoe. Ag business- sum of all operations involving taking a food from its production point to where it is consumed. Understand relationship between us agricultural and world market. We are dependent on world market because of our small population. 3-4 questions about gross domestic product and gross national product. Gdp, gnp- john deer is a us corporation. Iowa is very consistent climate; we produce 20% more stuff than iowa. Concept of a substitute goods and compliment goods (examples) Market demand curve is sum of individual demand curves. Understand that change in price can result in an income effect. Corn in mexico; if price of corn goes up there will be an income effect.
