Thursday, February 4, 2010

Wheat Prices & Changes in Supply

In 2007, wheat prices were near record highs, and the reason for the high price of wheat was due to changes in supply. First, bad weather around the globe was reducing the amount of wheat that could be produced. Second, many farmers were switching from growing wheat to growing corn - due to the high demand for ethanol, thus farmers were substituting the amount of wheat produced for growing more corn.

Check out more examples of changes in demand, changes in supply or changes in both.

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