• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economics commentary

Extracts from this document...

Introduction

Economics Commentary - Rising food prices The rising food prices around the world are causing crises everywhere. Consumers are facing this because of the conditions of demand and conditions of supply are changing. Conditions of demand are when you consider the factors that cause an increase or a decrease in demand for a good or service. Conditions of supply are when a shift of the supply curve occurs when the price does not change but another variable does. This rise can be illustrated by the factors of price; signaling device- a rise in popularity of one good, increases demand will then outstrip supply at the current price - a shortage will exist and the price will rise. The rise in price acts as a signal for producers to put more factors of production into making food. ...read more.

Middle

so they can cover their cost. Since supply has decreased then there is an extension in demand. This would make the price increase and quantity demand would decrease. But overall from (Q1,P1) to (Q2,P2) price has increased and quantity demand has increased a bit. The article states that if the poor countries speed up investing on agriculture and more farmers come in the market, then they "will grow more grain for both fuel and food, and eventually bring prices down. This is an example of price acting as a signaling device for resource allocation. This is a long term solution that can take place. What is happening here is that farmers join the industry and so supply increases. There is an extension on the demand curve. ...read more.

Conclusion

This will hit hard on the poor countries like Tanzania. The article states "Tanzania are likely to be gripped with severe hunger crises" this shows that the government will have to do something for the country. The best way that they can do this is invest on agriculture and so farmers can bring down the food prices by producing more locally. This has been started in the developed counties as they have planted wheat; this is a long term strategy. But still consumers will "face at least 10 years of more expensive good", so the earlier the government can intervene, the less years of expensive food. The UN is facing a $500 million shortage in funding to feed 89 million people. Word Count: 749 ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Macro Economics Notes

    lacking either the geographical or occupational skills to take the jobs that are on offer in the economy. e.g. an unemployed steel worker living in a town where the steel works have closed down. Cyclical unemployment - unemployment caused by a down turn in the economy.

  2. The structure of the EU budget and its allocation

    � Emergency Aid Reserve EUR 249 million both in commitment and payment appropriations. � Provisional appropriations of EUR 537 million in commitment appropriations and EUR 410 million in payment appropriations. The above table shows the full implementation of all available appropriations including amounts carried over from 2009 into 2010 and assigned revenue.

  1. The Economics of Housing. Factors affecting prices and demand.

    So the change of house prices trend was upwards. Year 2004: From the graph figure we see that, there is an increase in house price in all the year 2004. The average price of house in jannuary-2004 was �139,514 in all UK and �261,215 in greater London.

  2. Markets and Price Determination

    if the price of the good increase, the quantity supplied rises, and if its price decreases, the quantity supplied falls.' To produce more of a product, a firm will need to use more factor inputs, which will increase its costs.

  1. Why did the UK did not join the EC until 1973

    Post in February 1930 in which he stated: "We have our own dreams. We are with Europe but not of it. We are linked but not compromised" (J. G. Plumpton, 1998 - emphasis added). In the aftermath of World War Two Churchill reiterated his call for a united Europe during

  2. Role of ICT for "Make in India" government initiative.

    the defence sector and country?s intensive modernization plans are some of the key reasons to invest in India. Russian President Vladimir Putin has showed his keenness to manufacture one of its most advanced helicopter Kamov 226 T in India. Although 6O% of defence purchases come from Russia, Indian government aims

  1. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    By the early 1800s, high-pressure steam engines had become compact enough to move beyond the factory, prompting the first steam-powered locomotive to hit the rails in Britain in 1804. For the first time in history, goods were transported overland by something other than the muscle of man or animal.

  2. IB economics commentary - Demand and Supply

    Meanwhile, head of the Agricultural Production Committee at the Shura Council Hussein Mohamed Hegazi agreed that the Ministry of Agriculture is to blame for high vegetable and fruit prices, though for different reasons.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work