Monday, September 06, 2010

Unit 1: The price of wheat

The drought continues in Russia according to this BBC video

http://www.bbc.co.uk/news/business-11202745

a) Using a S&D diagram, explain the likely effect on the world price of wheat by the reduced Russian harvest/Russian export ban
b) Using a S&D diagram, explain the likely effect of this on the price of products that have wheat as a major component (eg bread, cornflakes, beef etc)

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