Fewer Chickpeas Means Cheap Protein Could Be Harder to Find

EconEye Admin

4 years ago

Farmers in the United States planted fewer chickpeas this year as poor weather bogged down spring planting and they prioritized other crops like wheat and corn. Grocery stores report a 12% increase in chickpea prices over last year.—reuters.com

Answer the following questions to check your understanding of the story.

How did poor weather in the spring of 2022 influence the U.S. chickpea market?

a) The supply of chickpeas decreased and as the price rose the quantity bought and sold increased.

b) The quantity of chickpeas supplied decreased and as the price rose, the quantity bought and sold increased.

c) The quantity of chickpeas supplied decreased, and the quantity bought and sold decreased.

d) The supply of chickpeas decreased, and the quantity bought and sold decreased.

Wrong! - Did the poor weather decrease the quantity of chickpeas supplied or the supply of chickpeas? What is the difference between a decrease in supply and a decrease in the quantity supplied? How does a change in supply influence the quantity bought and sold?

Correct! - The poor weather in the spring of 2022 decreased the supply of chickpeas. When supply decreases, the supply curve shifts leftward and the quantity bought and sold decreases.

How did poor weather in the spring of 2022 influence the U.S. corn market?

a) Farmers increased the supply of corn, so the market price fell and the equilibrium quantity decreased.

b) Farmers increased the quantity supplied, and as the market price fell, the equilibrium quantity decreased.

c) Farmers increased the quantity supplied, so the equilibrium quantity increased.

d) Farmers increased the supply of corn, and the market equilibrium quantity increased.

Wrong! - With poor weather, farmers substituted corn plantings for chickpea plantings. Does this substitution increase the quantity of corn supplied or the supply of corn? What is the difference between an increase in supply and an increase in the quantity supplied? How does a change in supply influence the market price and the equilibrium quantity?

Fantastic! - With poor weather, farmers substituted corn plantings for chickpea plantings. The supply of corn increased. When supply increases, the supply curve shifts rightward, the market price falls, and the equilibrium quantity increases.

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