Analysis of Rising Food Prices
Autor: jeremiahnoack • September 30, 2013 • Research Paper • 729 Words (3 Pages) • 1,307 Views
Analysis of rising food prices
Jeremiah Noack
ECO/365
September 9, 2013
Leo Stevens
Analysis of Rising Food Prices
The cost of food will directly affect what people will consume, and it directly affects how healthy that person and their family will eat. There are many patterns of consumption, which include the quality of the food, quantity that the consumer is buying and what the customer can afford at the time. During the global food crisis of 2007-2008 many researchers noticed a dramatic change in how and what people began to consume in relationship to their income. According to Green, Cornelsen, and Dangour (2013) “Estimates from the United Nations Food and Agriculture Organization suggest that in 2008 an additional 40 million people were pushed into hunger by the global rise in cereal prices, and evidence is accumulating that dietary diversity and quality have been negatively affected by food price rises, particularly among the poorest” (p1).
Food Prices
In some countries they are trying to adopt policies that will change the price of certain foods to promote a healthier diet. There have been simulation studies that tax foods like sugar sweetened beverages or high saturated fat and salty foods, but no actual data has measured the impact of these taxes. There have been several studies of the relation between the price of foods and the demand for that food, also known as price elasticity’s of food, but there have not been many attempts at combining the results to come up with a solution.
Changes in Demand
There are many changes in demand today because of the incomes and the production of the products demanded. Even though wheat production is up by 3.5%, the demand for the product drives the prices of wheat up, which in turn affects what the people in lower income households can buy. In lower income countries the prices changes affect demand more dramatically with resources like, meat, fish, and fruits and vegetables. In higher income countries these items are more price elastic.
Changes in Supply
In
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