Weat Essay examples

1230 Words Apr 14th, 2014 5 Pages
As we already know from the previous questions, tThe price of wheat is strongly is determined bylinked with its supply and demand. In order to determine the increases and decreases of the wheat price, we don't necessarily pay attention to whether supply and demand are elastic or inelastic. What we know and we care about is thatThe demand forof wheat has been increasing over the last few years, and that is because population andis growing over the years, so income is growing aswell. With other words, tThe more people there are and the higher their incomemore money they get, the mostre wheat will be consumed. But why was 2008 an exceptional year for the price of wheat? Simply because, even though high income countries kept the pPopulation …show more content…
In addition, the price of wheat also depends on the production they have had. Depending on the quality or the amount they produced, they could have adjusted the prices. That means that a bad production equals decrease in demand, equals decrease on prices. On the other hand a good production equals increase on prices. [This is not correct.]

Question 10

Trying to answer questions like: Will the price remain high in the future is really hard, especially if your knowledge about the issue is limited. On the other hand though, based on some facts, it is possible to make some predictions about the price of wheat. We already know that the demand of wheat has beenis increasing over the years in low income countries. Additionally we know that even thought the technology is improvinggetting better and better over the years [explain importance], the global warming is a problem that will remain in the upcoming years. [why is this important] Lastly, we know that even thought the demand of wheat is increasing in low income countries, and the population is as well, the income is an unstable factor, cause simply we don't know how it will evolve. Overall, it is my strong belief that the price of wheat in the future will not remain that high, so people will not be able to buy it, but neither will fall down. [But

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