US wheat prices have fallen and are at the lowest level in more than four years.
ID: 1094311 • Letter: U
Question
US wheat prices have fallen and are at the lowest level in more than four years. Why have prices for US wheat fallen and what factors may limit the reduction in prices in grocery stores?
Pork prices in the US have increased by approximately 12% in the past 12 months. Why? Describe the price change using a supply and demand model and discuss the impact of the rise in pork prices in the beef and poultry markets. Clearly state any assumptions made in the context of your answer.
A recent headline reads:
Explanation / Answer
1) Prices for US wheat fallen and what factors may limit the reduction in prices in grocery stores
The World Food Program's description of the global food crisis raises the specter of a natural disaster surging over an unaware populace that is helpless in the face of massive destruction. With billions of people at risk of hunger, the current food crisis is certainly massive and destructive.
But the reasons so many people have limited access to food are anything but "natural." On the contrary, decades of skewed agricultural policies, inequitable trade, and unsustainable development have thrown the world's food systems into a volatile boom and bust cycle and widened the gap between affluence and poverty. Though hunger is coming in waves, not everyone will "drown" in famine. In fact, the world's recurrent food crises are making a handful of investors and multinational corporations very rich
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