Economical theory (graphs and equations)

Congressional District -Information on what the paper is over.
• My congressional district is district in Texas is the 36th Congressional District.
o Congressional Representative for this district is Mr. Brian Babin
 This is a memorandum to him.
o https://ziplook.house.gov/htbin/findrep_house
• Commodity #1 is HAY.
• Commodity #2 is HORSES.
• Information on the 36th district.
o https://www.nass.usda.gov/Publications/AgCensus/2017/Online_Resources/Congressional_District_Profiles/cd4836.pdf

Introduction- 1st paragraph in the paper

Commodity 1 Paragraph – 2nd paragraph in the paper
• Commodity = HAY
o Using economical theory (graphs and equations) and SHORT (concise) sentences, explain the impacts in the short-run and the long-run on: the price and quantity of hay sold in the U.S.
o 6 Questions and the answers:
 What happened in the first shift (short-run)? Why did this happen?
• The demand for Hay increased in the short-run. This happened because with the increase in demand for beef, the farmers need more hay to feed their cattle.
 What were the results of the first shift?
• The results of this shift in demand are that price increases from P0 to P1. And quantity increases from Q0 to Q1. In the short-run the farmers will be better off because their revenue increased.
 What happened in the second shift (long-run)? Why did this happen?
• In the long-run, supply will increase. This happened because the…???
 What were the results of the second shift?
• Price decreased (back to where it was basically)
o So does this make price go back to its optimal level?
• Quantity= increased
• Revenue= increased
 What are the total affects on price and quantity? Revenue?
• Total effects on price= is not effected/indeterminate. ?
• Total effect on quantity= increases
• Total effect on revenue= increases
 Are farmers/exporters better or worse off? Why?
• The hay farmers are better off.

Commodity 2 Paragraph- 3rd paragraph in the paper
• Commodity = Horses
o Using economical theory (graphs and equations) and SHORT (concise) sentences, explain the impacts in the short-run and the long-run on: the price and quantity of oil for the U.S.
o 6 Questions and the answers:
 What happened in the first shift (short-run)? Why did this happen?
• The supply decreased in the short-run.
• This happened because we need more land for cattle, so there is less land for horses.
 What were the results of the first shift?
• Price increased
• Quantity decreased
• Revenue ?
 What happened in the second shift (long-run)? Why did this happen?
• Demand decreased
• This happened because the price went up, so less people are demanding horses.
 What were the results of the second shift?
• Price decreased from what it was at in the short-run.
o but is also indeterminate???
• Quantity decreased
• Revenue decreased
 What are the total affects on price and quantity? Revenue?
• Total effect on price = indeterminate
• Total effect on quantity = decrease
• Total affect on revenue = decrease
 Are farmers/exporters better or worse off? Why?
• The people who raise horses and sell them, are worse off.

Conclusion- 4th paragraph of the paper

Graphs- these should be on an Appendix page.

Sample Solution