The weather is always bad for a farmer because they face supply and demand issues no matter if they have a good crop or a poor crop. Growers work under the product homogeneity model in which everything they sell looks the same in the eyes of the consumer. The grower needs to work hard to differentiate their product from others or else they are faced with selling their goods for the lowest price (Hutchinson, 2017, 3.1, para, 2). If the farmer has a good crop, then they will be faced with a saturated market and they will receive a lower price for their crop. If the crop is poor than they will not have a lot of volume to sell so they will need to make sure they get full market price for all of their product.
The elasticity of wheat is inelastic. As Hutchinson discusses in Unit 4 ofPrinciples of Microeconomics, when a price result outshines the quantity outcome, the elasticity is inelastic (2017, 4.2, para. 2). The price change has very little to do with the demand of wheat, the quantity demanded will not change.
In the case of a bumper crop, the supply will exceed the demand and growers will need to decrease their prices so that they are not faced with potential issues such as spoilage or storage concerns. The growers will be faced with a consumer surplus caused by the sheer amount of fruit in the market (Hutchinson, 2017, 3.2, para. 12). The growers revenue has potential to stay the same or be less then a regular crop because of the pressure to sell this increased supply.
Positive after-effects of marijuana legalization in Canada include, the additional revenue our government can earn due to increased taxes. The removal of marijuana as a street drug can open up our police force to spend time fighting crime that has a larger impact on society as well as save court costs that are used for marijuana charges. Legalization gives the government the ability to regulate the ingredients and chemicals being used in marijuana production. A positive effect that wasn’t mentioned is that marijuana legalization creates new legitimate jobs across the country as retail stores and production facilities are established (George-Cosh, 2019). I do not have any concerns over the effect of marijuana legalization. I think it was the right thing to do and we are now seeing more countries follow suit (Hacienda, 2021).
If you had asked me two years ago what major changes I saw coming in the demand and supply of the cannabis market. I would have said that the volume of producers in the industry would cause an increase in the aggregate supply of marijuana in Canada. This increase would create a surplus of cannabis and suppliers would need to drop their prices (Hutchinson, 2017, 3.5, para. 13). Fortunately, the industry saw this coming and over the last year we have seen take overs and mergers in the legalized marijuana business (Khan, 2021).