Economic demand supply

Based on the article titled “Argentine bread prices keep rising as grain scarcity kicks in” as my analysis topic regarding of change in supply or demand, changing in equilibrium. The article that I choose was from United Press International (PUP)’s website which is http://www. Pup. Com/ and it was published on Tuesday, October. 29, 2013. Based on the article, it shows that the price of bread increase due to the scarcity of wheat which is the main source of making bread.
Figure 1 Figure 1 shows that the E is initial market equilibrium, the equilibrium price is POP ND the equilibrium quantity is CO. Suppose that decrease in supply shifts the supply curve from SO to SSL . Given that the new supply curve SSL, the quantity supplied by producers at the initial market price POP decrease from CO to IQ . Because the quantity supplied by producers at POP is smaller than the quantity demanded by consumers at POP, a shortage develops at POP. The shortage cause consumer to bid up the market price. As market price increase, the quantity demanded, Sq, decrease along DO and the quantity supply, Sq, increase along SSL .
The quantity demanded, Sq entities to decrease and the quantity supplied, Sq, continues to increase until the shortage is eliminated and the quantity demanded equals the quantity supplied at Pl and IQ with the new equilibrium point El . Based on the Law of Supply one of the factor that shifted the supply curve is production and costs. When input of making bread expands, a firm’s production costs rise, therefore a higher price is needed to Justify the extra output and cover these extra costs of production because of the For commodities such as wheat, the effect of lunatic conditions can apply a great influence on market supply.

Unfavorable weather conditions will lead to a poorer harvest, lower yields and therefore a decrease in supply. Changes in weather condition can therefore have an effect on prices for agricultural goods such as wheat. Because these commodities are often used as ingredients in the production of other products, a change in the supply of one can affect the supply and price of another product. Higher wheat prices for example can lead to an increase in the price of bread as we see in the article.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

At Solution Essays, we are determined to deliver high-quality papers to our clients at a fair price. To ensure this happens effectively, we have developed 5 beneficial guarantees. This guarantees will ensure you enjoy using our website which is secure and easy to use.

Money-back guarantee

Most companies do not offer a money-back guarantee but with Solution Essays, it’s either a quality paper or your money back. Our customers are assured of high-quality papers and thus there are very rare cases of refund requests due to quality concern.

Read more

Zero-plagiarism guarantee

All our papers are written from scratch and according to your specific paper instructions. This minimizes any chance of plagiarism. The papers are also passed through a plagiarism-detecting software thus ruling out any chance of plagiarism.

Read more

Free-revision policy

We offer free revisions in all orders delivered as long as there is no alteration in the initial order instruction. We will revise your paper until you are fully satisfied with the order delivered to you.

Read more

Privacy policy

All data on our website is stored as per international data protection rules. This ensures that any personal data you share with us is stored safely. We never share your personal data with third parties without your consent.

Read more

Fair-cooperation guarantee

Ordering and sending money to us is an indication that you are purchasing our products and services. To have business talks laid out in the official language, you can check on our terms and conditions and get more information about this.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 20% with the discount code: LEMONADEPlace Order