Wheat Hits Record Global Demand

http://abcnews.go.com/Business/story?id=4017581&page=1

One of the main principles of microeconomics is the law of supply and demand. The laws of supply and demand show the effects of supply and demand graphs on each other, as well as how the prices in the market can fluctuate depending on the level of demand for a specific product. In the article, the laws of and supply are shown regarding the global produce market. The main product that is focused on in the article is wheat as well as other grain products and corn. She explains how prices of wheat have skyrocketed recently due to a lack of supply, while demand remained the same, if not higher. Due to the fact that there is a shortage of wheat, the producers need to charge more per bushel in order to keep their businesses afloat. The reason for the prices jumping is that there has been severe weather in the countries that are known for producing and exporting wheat. In addition to that, the United States has also caused a decrease in the supply of corn, which could also have created a jump in price in the corn market. The US contributed to this decrease in supply because of the decision to use corn to produce ethanol rather than sell it as the fresh produce/vegetable people wish to buy it as.

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