Title: Why Are Food Prices So High?
Headings: Why Are Food Prices So High?
Why Are Food Prices So High?
Content: This trade has stabilized prices when local weather or growing conditions are impacted. But rising populations, largely in Asia, have created demand for crops and finished good from other parts of the world, and have impacted prices. As every student of economics knows, price is a function of supply and demand. When demand for a commodity rises on constant supply, prices usually rise. Conversely, when demand falls at constant supply, prices usually fall. The same thing works with supply. Rising supply on constant demand causes a fall in prices while falling supply on constant demand causes prices to increase. So one could conclude that rising food prices have been caused by falling supply or increased demand. This is true, but there is a lot going on behind the scenes causing this. What’s going on?