What effect will Ralph's departure have on the market for the commodities he produces?

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Prepare for the Farm and Agribusiness Management CDE Test. Utilize multiple choice questions, flashcards, and receive explanations for each answer. Boost your readiness and ace the exam!

Ralph's departure from the market will have no effect on the market for the commodities he produces because his individual output, while potentially significant to his own operation, is likely to be a small fraction of the total market supply. In a competitive market, it is generally the overall supply and demand dynamics that determine prices rather than the departure of a single producer unless they are a major player in that market.

If Ralph is a small producer in the broader context, his exit would not meaningfully shift the supply curve enough to impact the equilibrium price or quantity significantly. Consequently, other producers would continue to meet market demand, and market prices for corn and soybeans would remain stable. This is reflective of the fact that agricultural commodities are often produced by many farmers, and changes in one individual's production level might not alter overall market conditions.

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