Problems & Exercises for MACRO

UNIT ONE (FOR EXAM ONE)

Unit One--Assignment Two--Web Problem 4

What would happen in the market for soybeans if a new, miracle soybean seed was invented? Use a supply and demand graph and make one shift of either the supply or demand curve.

Suppose bad weather destroyed 75% of the soybean crop. Illustrate the effect of this event by using a supply and demand graph. Again, make only one shift.