Macroeconomics and the Farming Industry
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The paper reviews a 2004 article "Using Macroeconomics to Explain Entry, Exit and Farm Size in the Dairy Industry in the United States" applying macroeconomic theory. The paper explains the problem of farmers exiting the industry when excess demand depressed prices.
From the Paper:"In "Using Macroeconomics to Explain Entry Exit and Farm Size in the Dairy Industry in the United States", Foltz applied macroeconomic theory and models to explain farm exits and changes in herd-size among Connecticut dairy farms. Foltz found that a relatively stable inelastic demand caused many farmers to exit the industry when excess demand depressed prices. The demand for dairy products remained relatively stable regardless of price, however excess supply led many farmers to reduce prices..."
Cite this Article Review:
Macroeconomics and the Farming Industry (2008, December 01) Retrieved January 28, 2021, from https://www.academon.com/article-review/macroeconomics-and-the-farming-industry-121873/
"Macroeconomics and the Farming Industry" 01 December 2008. Web. 28 January. 2021. <https://www.academon.com/article-review/macroeconomics-and-the-farming-industry-121873/>