According to the Washington Post article The Downsides of Cheap Corn, farmens 20

Question

According to the Washington Post article The Downsides of Cheap Corn, farmens 2014 crop revenues were down from pridr years, despite very productive harvests all around the United States. Which of the statements is the explanation offered by the article for this apparent paradox? O The coxts of farming have increased faster than productivity, leading to higher crop yields but lower profits. O Consumer demand for agricultural crops such as corn, soybean, and wheat are at record lows. O An influx of farmers entering the agricultural market has led to fierce competition, driving down revenues The increase in the supply of crops has decreased prices by a greater percentage than the percentage increase in quantity of sales.

Explanation / Answer

The following statement is the explaination offered by the article for this apparent paradox:

- The increase in supply of crops has decreased prices by a greater percentage than the percentage increase in quantity of sales.

The increase in supply of crops has affected the prices as the supply is more than the demand for the crops so the excess supply of crops will create a downward pressure on the prices and the decrease in prices will decrease the profit of the farmers.

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