WHEAT PRICE

Wheat price

Wheat price

Introduction

What prices have been an important global issue for the people around the world, it has been discussed on various forums for designing various strategies. Following are the answers to the related questions asked regarding wheat prices and its demand.

Answers

Why has the demand for wheat been increasing?

The world markets for wheat have monopolistic structure with the main part of world exports are concentrated in a few countries such as Canada, the United States and Australia. These three countries, through the interaction of their policies to influence the world of prices wheat significantly in the past. Any strategy for market stabilization period of the price next requires either demand or supply function be elastic (Johnson, 1975). Almost every geographical area, little can be done to elastic demand function. Thus, the programme aimed at achieving market stabilisation period of the price next must therefore work through the changing functions of proposals. Feature suggestions might be made of elastic in one of two ways-through the Office of export/import and/or and storage. These two technologies have been successfully merged United States, Australia and Canada over the past three decades. Market stabilisation period of the price becomes necessary because very often the effects of fluctuations in the world of prior prices wheat is consumers are exporting countries, along with consumers in low-income countries. Therefore, for countries such as United States that allow the transfer of international prior term prices next in their domestic markets, price stabilization and preventing wild fluctuations in the international grain prior term prices next becomes necessary in the interests of its customers.

How is the increase in the price of wheat likely to affect the demand for wheat? (Use the concept of own price elasticity of demand)

Due to high price elasticity of supply, as already noted, any changes in aggregate ...