Supply and demand
Each year’s level of production and price (per bushel) for most agricultural products affects the level of production and price for the following year. Suppose the soybean crop in a country was 80 million bushels in 2014 and
[price each year] = 20 - .1 * [quantity that year] [quantity each year] = 5 * [price from the preceding year] - 10,
where quantity is measured in units of millions of bushels.
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