Explain why the following might be true. A drought around the world raises the total revenue that farmers might receive from the sale of grain, but a drought only in Kansas reduces the total revenue that Kansas farmers receive. The picture is the rubric. The economic models/theories that we have learnt are the demand curve, the supply curve, other factors that effect on the demand side:

• Consumer income
• Substitutes and complements
• Consumer tastes
• Government policies
• Market expectations
• Number of buyers

On the supply side some other factors are:

• Input costs/costs of production (materials, labor)
• Technology
• Government policies
• Market expectations
• Number of sellers

View Rubric Problem Set Rubric (1) (1) Criteria Ratings Economics1.2: Uses graphs to display economic models and Advanced Mastering Developing Insufficient Evidence arguments view longer description Economics2.1: Reasons using economic models to explain, Advanced Mastering Developing Insufficient Evidence compare/contrast, and question relevant economic theories view longer description Teamwork: You openly acknowledge the contributions of team members and seek Advanced Mastering Developing Insufficient Evidence equitable sharing of work. view longer description