1. Draw correctly labeled side-by-side graphs of the soybean market and an individual farmer. On your graphs show each of the following.:
Please show a visual representation of how to draw the graph a. The long-run equilibrium price and quantity in the soybean market, labeled with price and quantity.

b. The profit maximizing quantity of soybeans produced for a farmer earning zero economic profit, labeled correctly.

c. Assume the demand for Tofu (made from soybeans) increases. On your graphs, show what will happen to each of the following in the short run.

d. The market price and quantity of soybeans; labeled correctly.

e. The area of profit or loss earned by the soybean farmer, shaded completely.

Explain what will happen to the equilibrium price and quantity for soybeans in the long run? Explain.

g. Assume a farmer can grow either corn or soybeans in a competitive market. What is likely to happen to the price of corn in the next growing season if the price of soybeans increases? Explain.



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