Math help Please

[rr2008]

China has committed to "purchase up to $50 billion in US agriculture products" so says President Trump.

Lets break this down , Most recent annual China purchases of US agricultural products have been in low to mid $20 billion dollar annual range for the last decade ( from what I can find ). So now somehow $50 billion dollars is in play ???

Going to be a lot of ag product.

Also lets look at the statement , up to $50 billion , well that means it could be $1.00 , as long as the amount is less than $50 billion and more than zero it is a true statement.

China's statements so far do not sound as positive as DT's.

 

[Okie4570]

Raise commodity price and problem solved. $4 bushel wheat up $6 and the same amount will be sold, just for more money.

 

[rr2008]

Raise commodity price and problem solved. $4 bushel wheat up $6 and the same amount will be sold, just for more money.

However the laws of supply and demand dictate that at higher price less will be sold not the same amount.

So how to get to that easy sounding "Raise commodity prices and problem solved". The way to increase price is to decrease supply or increase demand.

China has booked less than 200 million bushels of 2019 soybeans, so meeting the reported goal of 1.1 billion will take a whole lot of buying
( this from the weekly soybean review ).

 

[CHenry]

China is selling to NK I bet.

 

[Okie4570]

$50 billion in products, an undetermined amount of product. So many variables and countries involved, not just us and China.

 

[tRidiot]

Raise commodity price and problem solved. $4 bushel wheat up $6 and the same amount will be sold, just for more money.

Which isn't a bad thing when we pay people NOT to grow.

 

[CHenry]

Ag products? Could be Marijuana or Hemp?

 

[AKguy1985]

Ag products? Could be Marijuana or Hemp?

Marijuana is Illegal in China. Randy Marsh found that out the heard way a couple weeks ago when he got thrown in the gulag.