Asked in AgricultureWheat
Agriculture
Wheat
'why is wheat supply fixed in the short-term'?
Answer

Wiki User
September 13, 2011 3:55PM
Any short-term measures, from a price ceiling,that the government might use to help alleviate the shortage of wheat
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What is the elasticity of demand and supply and why is supply fixed in the short-run?

equilibream
Answer
Wheat grows according to harvest cycles. So in the short run,
you only have as much wheat as was planted and harvested for a
given year.
If you forecast that you are going to need more wheat over, say,
the next 5 years, you can plan to devote more land to growing
wheat, buy more fertilizer, invest in more labor hours, etc. But
once the wheat is in the ground and growing for a particular year,
there is only a limited amount you can do to improve supply for
that particular year.
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How might the price of corn affect the supply of wheat?

Since corn and wheat can both be used as types or grain, they
are in a way interchangeable amongst buyers. These types of goods
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the price of corn rises, that leaves wheat being the more favored
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wheat increase, the supply will decrease. The opposite would happen
if the price of corn falls. If it falls under the price of wheat,
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Asked in Landforms
Why is land supply limited?
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What do you mean with the statement A fixed supply means that real estate prices will fluctuate with demand?

The statement refers to basic microeconomics:
Under the condition of a fixed supply, demand
alone determines price. Supply is constant.
Under other conditions, Supply is represented on a graph
as a line that slopes upward, while demand is a line that
sloped downward. That is that as the quantity supplied
increases, so does price. As the price increases, the
quantity demanded decreases. Where the two curves meet is
called the Equalibrium.
Under the condition of a fixed supply, supply is
not represented by a curve, but a vertical line.
Demand is still a curve, but the quantity demanded
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edit: That answer is hyper-technical, and reads like a modern
textbook. The terms, "demand" and "fixed supply" refer exactly to
this type of graph. In English, the question simply means that the
price of real estate will go up or down depending solely on how
much people are willing to pay.
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Is economic rent fixed in total supply?

Land is completely fixed in total supply. No
matter how high the rent, no more can be brought into use. Thus
rent serves no incentive function; the same amount of land will be
available no matter how high the rent. But the resulting argument
that rent is a surplus that could be eliminated without reducing
the supply is to look at it from the viewpoint of society only.