Microeconomics: Theory and Applications with Calculus, 4e

2 Supply and Demand

Talk is cheap because supply exceeds demand.

CHALLENGE Quantities and Prices of Genetically Modified Foods

Countries around the globe are debating whether to permit firms to grow or sell genetically modified (GM) foods, which have their DNA altered through genetic engineering rather than through conventional breeding.1 The introduction of GM techniques can affect both the quantity of a crop farmer’s supply and whether consumers want to buy that crop. Using GM techniques, farmers can produce more output at a given cost. Common GM crops include canola, corn, cotton, rice, soybean, and sugar beet.

¹Sources for Applications and Challenges appear at the back of the book.

At least 29 countries grow GM food crops, which are mostly ...