Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: NRG1973
"There will be surplusses for American consumption...but we will still have to pay significantly higher prices."

Temporarily, perhaps. But historically the American farmer has ALWAYS overproduced sufficiently to drive prices down, even in the face of seeming insurmountable demand.

15 posted on 02/17/2011 9:57:35 AM PST by Wonder Warthog
[ Post Reply | Private Reply | To 14 | View Replies ]


To: Wonder Warthog

Yes, what’s the old saying, nothing cures a high price like a high price. Producers will produce more to capture the higher prices before consumers cut back, then the prices will drop as demand decreases. It all works as long as there is some elasticity in supply and demand, and minimal “tinkering” by non-market forces. At least that’s the theory as I learned it.


16 posted on 02/17/2011 10:00:48 AM PST by chimera
[ Post Reply | Private Reply | To 15 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson