Micro paper - Anonymous 1 The article explains the rapid incline of growth for countries[i]n recent years the world's developing countries have

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Anonymous 1. The article explains the rapid incline of growth for countries, “[i]n recent years, the world’s developing countries have been growing about 7 percent a year, an unusually rapid rate by historical standards(NY Times).” This is one explanation for the increase in food prices. With more people to feed, that leads to more demand of the products, thus making the price of the product increase. The increase of price is happening at such a rapid rate, because the growth of countries is increasing so rapidly. As well as the population increasing, the stockpiles are growing low as stated, “[t]he world’s grain stockpiles have fallen to the lowest levels in decades(NY Times).” This issue helps increase prices of food because all the products grown now are expected to sell by the farmers. The fact that the farmers know their products will sell gives them the ability to sell their products for more money, which is one reason why the price increases. Along with the stockpiles being emptied, natural disasters have affected the prices of
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This note was uploaded on 04/04/2008 for the course MICROECONO 101 taught by Professor Rubin during the Spring '08 term at Rutgers.

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Micro paper - Anonymous 1 The article explains the rapid incline of growth for countries[i]n recent years the world's developing countries have

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