Figure 15-3
-Refer to Figure 15-3. Which panel could represent the demand curve facing the soybean industry?
A)Panel A
B)Panel B
C)Panel C
D)Panel D

Question

Figure 15-3    
-Refer to Figure 15-3. Which panel could represent the demand curve facing the soybean industry?
A)Panel A 
B)Panel B 
C)Panel C 
D)Panel D

Quizplus · Accepted Answer

Panel A shows the relationship between the quantity of soybeans that farmers are willing and able to sell at various market prices. This is the definition of the supply curve, but if we flip the curve horizontally, we get the demand curve that shows the relationship between the quantity of soybeans that buyers are willing and able to purchase at various market prices. Therefore, panel A represents the demand curve facing the soybean industry. Panels B, C, and D depict different market scenarios where either the supply or demand curve shifts due to changes in relevant variables such as technology, input prices, or consumer preferences.