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Specification:

• Price mechanism, demand and supply, price elasticity of supply, price elasticity of demand

Click to read the article below and then answer the questions:

US farmers’ hands are tied as world braced for wheat shortfall

• ‘Blunting the economic incentives offered by Chicago wheat prices that this month reached $ 13.40 a bushel, an all-time high.’ With reference to resource allocation, explain how price acts as a signal

• Explain why all-time high wheat prices are not encouraging farmers to increase their acreage

• ‘Russia’s attack on Ukraine has disrupted wheat exports from both countries, raising fears of food shortages in import-dependent nations.’ Using a demand and supply diagram, analyze the impact on the price of wheat

• Compare the outputs of the top 5 global wheat and meslin producers

• ‘The global grain market typically responds to shortages in one part of the world by tapping other regions that have a surplus.’ Using a chart, analyze the market’s typical response to a shortage

Gavin Clarke, Emmanuel College