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Aggregate Demand For Wheat
The demand for U.S. wheat is comprised of domestic demand and export demand.
The domestic demand for wheat can be given by the equation:
-QDD = 1700 - 107P
The export demand for wheat can be given by equation:
-QDE = 1544 - 176P
Domestic demand is price inelastic (-0.2), while export demand is quite more price elastic (-0.4).
The idea for the national accounts came during the 1930s depression in the U.S., when decision-makers wanted to get a better sense of by how much economic production had fallen. Si
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