Monday, July 29, 2019
Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 500 words - 1
Introduction to Microeconomics - Essay Example Although, the shift in demand can raise the quantity of food at any given prices, due to the present level of food supply, food prices would have to rise to let this ever-increasing food demand Ã¢â¬Ëmake-upÃ¢â¬â¢ with the given supply-level. This making-up of food demand with supply describes upward (leftward) movement along the shifted (newÃ ) demand curve, raising the equilibrium food prices. Thus, equilibrium food quantity and prices are expected to rise, however, due to the upward movement along new demand curve, the increase in price would keep this increased equilibrium quantity lesser than the shift in demand. But whatÃ¢â¬â¢s worsening the scenario is leftward shift in food supply which main determinants are unfavorable, volatile weather consequences including droughts, freezes, and floods in the main food producing and exporting countries: China, Russia, Australia, and Mexico. These unpleasant weather conditions have badly affected the crops and other productive resou rces, alarming the food production capacity in these countries. Other harmful environmental changes i.e. global warming can further shift the food supply leftward.