Demand Shift Evaluation in the Farmland Market Due to Brexit Fears

Peter Jordan discusses demand shift evaluation, focusing on the impact of Brexit on UK farmland prices. He explains the weakening of market demand, resulting in price and quantity changes, and evaluates the potential magnitude of these shifts. The discussion includes factors like Brexit's likelihood and its immediate aftermath, as well as future UK government subsidies. The video concludes with a brief mention of price elasticity and a preview of upcoming topics on supply shifts.

What is the primary concern for UK farmland prices in the context of Brexit?

• Improved farm profitability

• Increase in EU subsidies

• Loss of EU agricultural subsidies

• Higher demand for UK farmland

What happens to the market when demand weakens from D to D1?

• Excess demand occurs

• Supply shifts to the right

• Price and quantity increase

• A new equilibrium is established with lower price and quantity

How can the magnitude of a demand shift affect the market?

• It influences the size of changes in price and quantity

• It determines the speed of supply shifts

• It only affects the supply side

• It has no impact on market equilibrium

Which factor could lead to a sharper fall in farmland prices?

• Higher EU subsidies

• Decreased likelihood of Brexit

• Stable opinion poll trends

• Increased likelihood of Brexit

What role does price elasticity play in demand shift evaluation?

• It affects the extent of changes in price and quantity

• It determines the initial equilibrium

• It only influences supply shifts

• It has no impact on demand shifts