Introduction to Microeconomics Essay Example | Topics and Well Written Essays - 500 words - 1

Introduction to Microeconomics - Essay ExampleAlthough, the shift in demand can raise the amount of money 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 even with the given supply-level. This making-up of food demand with supply describes upward (leftward) movement along the shifted (new) demand curve, raising the equilibrium food prices. Thus, equilibrium food quantity and prices argon 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 whats worsening the scenario is leftward shift in food supply which master(prenominal) 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 affe cted the crops and other productive resources, alarming the food production capacity in these countries. other harmful environmental changes i.e. global warming can further shift the food supply leftward.