Explain the observed fall in the price of wheat

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Reference no: EM131182118

Suppose that a newspaper report indicates that the price of wheat has fallen. For each of the following events, draw a supply-and-demand graph showing the event's effect on the market for wheat. Then state whether the event could explain the observed fall in the price of wheat.

a. A drought has hit wheat-growing areas.

b. The price of rice has risen, so consumers look for alternatives.

c. As a consequence of increasing health concerns, tobacco farmers have begun to plant other crops.

Reference no: EM131182118

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