1. Page 310- Bullet points 1 and 4 help explain why increase in supply of some commodities has lead to lower prices. Explain these 2 points. Improvements in technology have caused a rise in supply, and thus lower prices. The EU and the US’s use of price support schemes have led to over-production of agricultural goods. These over-produced goods are then sold on the world markets, increasing world supply, pushing prices down.- Bullet point 2 explains why the demand for some commodities have fallen (or risen slowly) thus leading to lower prices (or just slightly higher prices). Explain this point. Artificial replacements (substitutes) for natural commodities have slowed the increase in demand for some commodities, thus prices are rising slowly.- Bullet point 5 also explains why demand has fallen for certain commodities. Explain. Many products have become smaller in size and require less raw materials and packaging, which has led to a fall in the demand for the commodities that were traditionally needed for these products.- Bullet point 3 explains why demand growth for some commodities had been slow. Explain.
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