This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

  • Price mechanism, demand and supply, price elasticity of supply, price elasticity of demand

Click to read the article below and then answer the questions:

US farmers’ hands are tied as world braced for wheat shortfall

  • ‘Blunting the economic incentives offered by Chicago wheat prices that this month reached $13.40 a bushel, an all-time high.’ With reference to resource allocation, explain how price acts as a signal

  • Explain why all-time high wheat prices are not encouraging farmers to increase their acreage

  • ‘Russia’s attack on Ukraine has disrupted wheat exports from both countries, raising fears of food shortages in import-dependent nations.’ Using a demand and supply diagram, analyse the impact on the price of wheat

  • Compare the outputs of the top 5 global wheat and meslin producers

  • ‘The global grain market typically responds to shortages in one part of the world by tapping other regions that have a surplus.’ Using a diagram, analyse the market’s typical response to a shortage

Gavin Clarke, Emmanuel College

Copyright The Financial Times Limited 2023. All rights reserved.
Reuse this content (opens in new window) CommentsJump to comments section

Follow the topics in this article

Comments

Comments have not been enabled for this article.