Economics class: US farmers’ hands are tied as world braced for wheat shortfall
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Price mechanism, demand and supply, price elasticity of supply, price elasticity of demand
Click to read the article below and then answer the questions:
‘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