In One Year, the Price of Soybeans Was $3

Essay

In one year, the price of soybeans was $3.50 a bushel, and the Jones family farm planted 7,500 acres of them. In the following year, although the price of soybeans fell to $3.25 a bushel, the Jones family farm planted 8,200 acres of them. Use the concepts of a shift in the supply curve versus a movement along the supply curve to explain why this increase in soybean acreage does not represent a violation of the law of supply.