The issues presented in the first article (PTI, June 27, 2016) are a shift in supply based on whitefly pest attacking cotton farmer’s crops. Cotton like most farm products are typically similar and are produced my many farmers and each producing a small amount compared to the collective supply in the market. Each farmer is price taker, therefore cannot affect the market singularly (Perfect Competition, n.d.). Consequently, the cotton farmers are operating in a perfect competitive market. Cotton, similarly to most farm goods is classified as a necessity; their demands therefore are less elastic as well as its supply (Perfect Competition, n.d.).
Figure 1 displays the quantity of cotton supplied decreased from Q to Q1, because of the whitefly pest problem. ...
... middle of paper ...
... If the prices suddenly fall, and people only want to pay $2 per bag or rice, the government might put in a minimum price (a floor) of $5, ensuring producers get enough money. If they put a price floor below equilibrium (e.g. $1) then it would be ineffective in protecting producers.
Price ceilings will change supply and demand; it will create a shortage in the market. If the price ceiling is set lower than the market equilibrium then there will be far more farmers trying to buy cotton seeds and there won’t be enough seeds to go around. While the price ceiling is set to protect the farmers from the inconsistencies in the cotton seed price, it’s important to realize it may have consequences in the market. My recommendation would be to enact price ceiling for a short time because the longer the ceiling continues worse shortage and the effects on the market will become.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Cotton is known as “White Gold”. Gossypium arboreum belongs to family Malvaecae with diploid set of genome have 13 chromosome number. Genotype × environment (GE) interactions have major role in development of improved cultivars. A cultivar is said to be commercially successful, if it performs well across the range of environments in which it grows. The differential response of a genotype or cultivar for a given trait across environments is defined as the genotype × environment interaction (G × E).... [tags: Agriculture]
1271 words (3.6 pages)
- Slavery in the cotton kingdom During the American Revolution and the civil war, the North and the South experienced development of different socio-political and cultural environmental conditions. The North became an industrial and manufacturing powerhouse as a result of rise of movements like abolitionism and women’s right while the South became a cotton kingdom whose labor was sourced from slavery (Spark notes, 2011). The distinct feature of cotton kingdom is that her activities were empowered by slave labor.... [tags: Cotton Industry, US History]
915 words (2.6 pages)
- The invention of the cotton gin revolutionized the way cotton was produced throughout the United States. Although it was seen as genius invention at the time, the company responsible for selling the service of cotton ginning had major financial troubles throughout the years. The failure of Eli Whitney’s and Phineas Miller’s cotton ginning business was a result of overextension of obligations, and patent infringement, and success beyond imagining. While machines made to remove the seeds from long-staple cotton have been around for over 1500 years, Eli Whitney’s cotton gin was the first to separate the seeds from the fibers of short-staple cotton.... [tags: Eli Whitney’s cotton, cotton plantations]
1430 words (4.1 pages)
- Around the globe, cotton belongs to the one of the most important crops. Approximately, 130 nations manufactured cotton during 2000, and it is projected that the crop was planted on 2.5 percent of the globe’s arable land zone, enabling it to become one of the most crucial in terms of land use after food grains and soybeans. In developing nations, like the United States, it accounts for approximately three percent of the total crop area. Cotton is manufactured for different reasons such as meeting people's basic wants and needs, distributing to achieve foreign exchange, or manufacturing textiles for exports.... [tags: agriculture, cotton production, farmers, crops]
1762 words (5 pages)
- The Cotton Gin Can few pieces of wood, and some thin metal teeth, a wooden wheel and a few brushes go on to change an entire country in a negative fashion. The cotton gin did exactly this. It was an invention that was so simple, so efficient, that came along at the exact right moment, that it managed to revolutionize the world. It was invented by Eli Whitney while America was still barely 10 years old. At that time America needed a more profitable product to sell than tobacco. America was looking to make itself known in the global market.... [tags: global market, tobacco, cotton]
1501 words (4.3 pages)
- Cotton is one of the major fibre crops of global significance, it is only cultivated in tropical and sub-tropical regions.  However, various types of pests attack cotton and other monoculture crops, such as the cotton bollworm Helicoverpa armigera, native bollworm H. punctigera and occasionally spider mites. These pests cause extensive damage to the crop; therefore, cotton has been genetically modified to produce specific toxins for insect tolerance, this is called BT toxin. BT cotton is a type of transgenic cotton containing a protein induced from the gene of soil bacterium named as Bacillus thuringiensis (BT).... [tags: Genetically Modified Cotton]
981 words (2.8 pages)
- Objectives of the project: 1. To study the functions of the subsystem of HRD i.e. training and development. 2. To study the existing policies of the Bank with regard to “Training and Development” of their employees. METHOD Research Design The research design is Exploratory, where in the in-depth study of the training and development policies of PNB has been done. The objective of exploratory research is to explore or search through a situation to provide insights and understanding. Research Methods 1) Secondary data analysis includes studying the website (www.Pnbindia.in) of PNB and also going through the various articles, magazines, journals and books on Training and Development.... [tags: Punjab National Bank Case Study]
2676 words (7.6 pages)
- Over the past few years cotton has gotten cheaper and cheaper. Yet, It’s gotten to the point where people start to wonder when history is going to repeat itself. In 2010 cotton prices looked like they did when America was in a civil war. Cotton reached a total price of $1.20 per pound. (Wall Street Journal 2013) The price of cotton now is about ninety-two cents per pound. (NYMEX - CME Group 2014). As you can see cotton prices have gotten cheaper, but many things can happen to cause the price of cotton to go up or for it to even come down lower than it is.... [tags: china, textile mills, cotton production]
1287 words (3.7 pages)
- The Influence of Cotton Mather “The Salem witchcraft trials,” a phrase not too often heard these days in everyday conversation. Witches burning at the stake, or drowning in a tub of water, and perhaps the most humane way of their execution, hanging. This piece of American history is a prudent example of how everyday people can, and were, be lead astray from what would normally be considered ridiculous and preposterous ideas, into something that warrants these horrible means of human demise.... [tags: Cotton Mather The Negro Christianized Essays]
1330 words (3.8 pages)
- History of Punjab: State of Sikh Religion Punjab, state in northwestern India,bordered on the north by Jammu and Kashmir state and Himachal Pradesh state, on the east and south by Haryana state, on the south and southwest by Rajasthan state, and on the west by Pakistan. Punjab state lies between the great systems of the Indus and Ganges river. Punjab had a population of 20,281,969. Chandîgarh is the state capital. The population of Punjab consists mainly of Punjabis, Jats, and Rajputs. The official language is Punjabi.... [tags: World History]
712 words (2 pages)
- The Article ' A Change Of Heart About Animals ' By Jeremy Rifkin
- The Utilitarian Moral Perspective And Kant 's Moral Philosophy
- The Universe Of The Big Bang
- Skills And Attributes Of An Effective Teacher
- An Impact Of Investment For Social Enterprise
- The Role Of Health Care Providers On Supporting Abby 's And Shanti 's Dying Rituals