A typical agricultural supply curve is shown below. Growing personal incomes across the globe have made many agricultural products in short supply. Please answer the questions below with reference to the supply curve.
In which range (low price, midprice, or high price) is agricultural supply the most elastic?
If you assume that we are currently in the high price range, what does this suggest will happen in the future regarding the world’s ability to feed its population?
A similar prediction was made hundreds of years ago by Malthus. What changed then and what may change in the future to alleviate this problem?