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Overproduction

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Kate
Kate

The document describes a scenario where a farmer named Henry Jones lives in a town and grows corn to support his family. His neighbor Walter Burke buys a new plow called the Uber-Plow that allows him to grow and sell more corn each month. Henry must decide whether to borrow money from the bank to buy the Uber-Plow as well, in an effort to compete with his neighbor and earn more money, or keep farming as he has been. The scenario then explores the outcomes of each choice and how overproduction of corn in the small town impacts the farmers.

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Overproduction Defined! Excess production; supply beyond the demand.
So what does that mean??? Play .Overproduction The Game to find out!
際際滷 4 - Your name is Henry Jones. You are a farmer. You live in Somewhereville, USA! You have a small plot of land. You are able to sell 20 bushels of corn a month at $1 a bushel. Twenty dollars a month is not enough money to feed your family. You have five young children that are hungry. Your neighbor, Walter Burke, has just bought the NEW UBER-PLOW! He can now sell 40 bushels of corn a month. In Somewhereville, you and Walter Burke are the only farmers that produce and sell corn.
際際滷 5 - The UBER-Plow costs $100! You have NO savings! Do you borrow $100 from the bank to buy the UBER-Plow?? NO (Go to slide 6) YES (Skip slide 6 and go to slide 7)
際際滷 6 - OK, you chose NO! You and your family suffer because Walter Burke is selling more corn. He can now afford to sell the corn for 75 cents a bushel because he sells more. Youve lost customers to Burke due to his markdown. As the months go by, the situation gets worse and worse. Your family is falling into deep poverty. In desperation, you quit farming and attempt to head West with your family to find work. GO TO SLIDE 5 and try choosing YES!
際際滷 7 - OK, you chose YES! At first, the UBER-Plow saves your family from falling into poverty! You now can sell 40 bushels of corn a month. However, Burke has lowered his price to 75 cents a bushel. You lower your price to match Burkes. For a month, both you and Burke are doing well selling corn at this price. You both sell about an equal amount of corn to the local population in that month.
際際滷 8 -What happens next?!?!?! At the start of the next month, Burke lowers the price of his corn to 50 cents in an attempt to gain more customers. Burke can afford to do this. He does not have any children to support. He also did not borrow money to buy the UBER-Plow. Do you want to lower your prices to 50 cents? Yes (flip to slide 9) No (flip to slide 10)
際際滷 9 OK you chose YES- Back into poverty! Turns out you cannot afford to lower your prices this low. They are too low for you to feed your family. You also owe $100 to the local bank. You are forced back into poverty.
際際滷 10- OK you chose NO - Back in poverty You lose all your customers to Burke because you refuse to lower your prices. You also still owe the bank 100 dollars! You are very poor and have no idea how you will feed your family or pay off the bank loan.

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Overproduction

  • 1. Overproduction Defined! Excess production; supply beyond the demand.
  • 2. So what does that mean??? Play .Overproduction The Game to find out!
  • 3. 際際滷 4 - Your name is Henry Jones. You are a farmer. You live in Somewhereville, USA! You have a small plot of land. You are able to sell 20 bushels of corn a month at $1 a bushel. Twenty dollars a month is not enough money to feed your family. You have five young children that are hungry. Your neighbor, Walter Burke, has just bought the NEW UBER-PLOW! He can now sell 40 bushels of corn a month. In Somewhereville, you and Walter Burke are the only farmers that produce and sell corn.
  • 4. 際際滷 5 - The UBER-Plow costs $100! You have NO savings! Do you borrow $100 from the bank to buy the UBER-Plow?? NO (Go to slide 6) YES (Skip slide 6 and go to slide 7)
  • 5. 際際滷 6 - OK, you chose NO! You and your family suffer because Walter Burke is selling more corn. He can now afford to sell the corn for 75 cents a bushel because he sells more. Youve lost customers to Burke due to his markdown. As the months go by, the situation gets worse and worse. Your family is falling into deep poverty. In desperation, you quit farming and attempt to head West with your family to find work. GO TO SLIDE 5 and try choosing YES!
  • 6. 際際滷 7 - OK, you chose YES! At first, the UBER-Plow saves your family from falling into poverty! You now can sell 40 bushels of corn a month. However, Burke has lowered his price to 75 cents a bushel. You lower your price to match Burkes. For a month, both you and Burke are doing well selling corn at this price. You both sell about an equal amount of corn to the local population in that month.
  • 7. 際際滷 8 -What happens next?!?!?! At the start of the next month, Burke lowers the price of his corn to 50 cents in an attempt to gain more customers. Burke can afford to do this. He does not have any children to support. He also did not borrow money to buy the UBER-Plow. Do you want to lower your prices to 50 cents? Yes (flip to slide 9) No (flip to slide 10)
  • 8. 際際滷 9 OK you chose YES- Back into poverty! Turns out you cannot afford to lower your prices this low. They are too low for you to feed your family. You also owe $100 to the local bank. You are forced back into poverty.
  • 9. 際際滷 10- OK you chose NO - Back in poverty You lose all your customers to Burke because you refuse to lower your prices. You also still owe the bank 100 dollars! You are very poor and have no idea how you will feed your family or pay off the bank loan.