Problem
Use the table and the Demand 1 curve to construct the demand for land out in the middle of nowhere in West Texas, where cotton is the only crop.
Label the graph properly, and use the Supply 1 line to draw a land supply curve. Not all labels will be used. Cotton sells for $3.00/bale.
What happens in this market when oil is discovered under this land? Assume cotton cannot be grown on land with oil derricks. Use Demand 2 and/or Supply 2 to show this change.
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Acres
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Bales of Cotton
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|
1
|
40
|
|
2
|
70
|
|
3
|
90
|
|
4
|
100
|
How do I make Supply and Demand 1 graphically and Supply and Demand 2 graphically?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.