FoodSupplyAssignment - Andrew Cheung 116001159 Andrew...

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Andrew Cheung 116001159 Andrew Cheung Microeconomcs No. 1 As the article discusses the rising cost of food it states, “The high growth rate means hundreds of millions of people are, for the first time, getting access to the basics of life…”. This quote depicts an increase in demand because of the now more available food. And since there is more demand and more supply, both curves shift and we arrive at a point of higher prices. Daniel W. Basse writes, “Everyone wants to eat like an American…but if they do, we’re going to need another two or three globes to grow it all”. This quote shows that there is not enough land to farm all the necessary food which would result in a scarcity. And from a scarcity of food, sellers can increase their prices to maximize their profits because the margin of people with the most money will be able to buy all the supply. The article notes that for Mr. Miller, “Expense for the diesel fuel used to run tractors and combines and for the fertilizer essential to modern agricultures have soared”. Things such as tractors and combines are complimentary to food since if it cost the
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This note was uploaded on 02/08/2011 for the course ECONOMICS 101 taught by Professor June during the Spring '08 term at Rutgers.

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FoodSupplyAssignment - Andrew Cheung 116001159 Andrew...

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