Dec 13, 2019 Canada is one of the world’s largest lumber producers and the United States imports lumber from Canada. Most U.S. forests are privately owned and are leased to lumber producers at market prices. In Canada, forests are government-owned and leased to lumber producers at low prices set by law. U.S. producers say that … Continue reading The Softwood Lumber Market
Month: December 2019
The Sugar Market
Dec 12, 2019 The United States produces sugar cane and sugar beet, but it also imports sugar from Mexico, Australia, and many other countries. Why? The United States doesn’t have a comparative advantage in producing sugar. Other countries can produce sugar at a much lower opportunity cost than can U.S. farmers, so the United States … Continue reading The Sugar Market
French Fry Shortage?
December 4, 2019 An unusually cold and wet potato harvest may lead to a French fry shortage in the US. Questions By how much is the U.S. potato harvest expected to decrease in 2019 over 2018? Does a decrease in the potato harvest change the demand of French fries or the supply of French … Continue reading French Fry Shortage?
Champagne and Cheese Tariff
December 3, 2019 US threatens 100% tariffs on French cheese and champagne. Questions What is the value of the French products that could be subject to the new 100 percent tariff? How will a tariff by the United States on French cheese influence the price and the quantity purchased in the United States? Who in the … Continue reading Champagne and Cheese Tariff
Black Friday Shopping
December 3, 2019 Black Friday broke shopping records. Questions Compare Black Friday shopping in 2019 with Black Friday shopping in 2018. Where is Black Friday shopping recorded in the National Income and Product accounts? Retail sales are expected to grow in 2019. If this increase in consumption expenditure is an increase in induced expenditure, describe the … Continue reading Black Friday Shopping
America’s Milk Industry
December 3, 2019 America’s milk industry is struggling. Questions What are some reasons for falling milk prices? What characteristics of the milk market suggest that the market is perfectly competitive? Why are some milk farmers exiting the market? Why do these farmers choose to leave the market rather than temporarily shut down? What do you expect … Continue reading America’s Milk Industry
Markets for Cocoa and Chocolate
Dec 3, 2019 The price of cocoa, the key ingredient of chocolate, has soared. Why? Given the almost universal love of chocolate, our team at Econ Eye thinks it’s a good idea to find the answer. Start with some facts. The table provides data for 2000 and 2020, which show that the quantity of cocoa … Continue reading Markets for Cocoa and Chocolate