Web-Based Questions


1			FARM COMMODITY PRICES—SUPPLY AND DEMAND IN ACTION The U.S. Department of Agriculture, http://www.nass.usda.gov/, publishes charts on the prices of farm products. Go to the USDA home page and select "Find charts and maps" and then "Agricultural Prices." Choose three farm products and determine whether their prices (as measured by "prices received by farmers") have generally increased, decreased, or stayed the same over the past 3 years. In which of the three cases, if any, do you think that supply has increased more rapidly than demand? In which of the three cases, if any, do you think that demand has increased more rapidly than supply? Explain your reasoning.




2			CHANGES IN DEMAND—BABY DIAPERS AND RETIREMENT VILLAGES Other things equal, an increase in the number of buyers for a product or service will increase demand. Baby diapers and retirement villages are two products designed for different population groups. The U.S. Census Bureau Web site, http://www.census.gov/ipc/www/idbpyr.html, provides population pyramids (graphs that show the distribution of population by age and sex) for countries for 2000, 2025, and 2050. View the population pyramids for Mexico, Japan, and the United States. Which country do you think will have the greatest percentage increase in demand for baby diapers between 2000 and 2050? For retirement villages? Which country do you think will have the greatest absolute increase in demand for baby diapers? For retirement villages?