Economics: A Report on Global Food Prices, Demand, and Supply Analysis

This report examines the economic principles of global food prices, demand, and supply, focusing on the impact of poverty and market dynamics. The analysis references a World Bank report to illustrate how falling food prices can increase demand, especially in poverty-stricken areas. The report utilizes economic concepts, such as the law of demand, to explain how price changes affect consumer purchasing power and market equilibrium. The report also includes a visual representation, such as a graph, to demonstrate the relationship between price, demand, and supply. The report aims to provide insights into how economic factors can influence food markets and the potential for economic growth and stability. This report is designed to provide insights into how economic factors can influence food markets and the potential for economic growth and stability.

Running head: INTRODUCTION TO ECONOMICS
INTRODUCTION TO ECONOMICS
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1INTRODUCTION TO ECONOMICS
Topic- Global food prices falls, demand decreases, supply improves-world bank-
Economics deals with two broad categories demand and supply of economic resources and
services with an aim of earning profit. Demand is the willingness or the wants and necessities
made by the consumers or the customers. It means the willingness to purchase a commodity in
exchange of money at a place called market (Alston and Okrent 2017). It includes the factors of
price and quantity. Law of demand says that with the rise in price creates less demand, on the
other side fall in price will create more demand and purchasing power for the product.
Supply on the other side means the fulfilling of those wants and willingness made by the
consumers or the customers. Due to good weather condition, supply rises with good production.
Supply depends on market factors, technology, and production unit and price factor. According
the supply law, Supply rises with the rise in price and quantity (Thirlwall and Pacheco-López
2017).
As per World Bank report, Due to poverty, there was fall in the demand for the purchase of food,
global food prices decline. As a result, supply increase as the decrease in price created more
purchasing for the product. Consumer will not purchase those products that consist of high rates
compared to market value. As it is poverty ridden, therefore by lowering the price on wheat,
corn there will be strong rise in the demand for that product, due to which economy achieves
growth and stability.

2INTRODUCTION TO ECONOMICS
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Figure1: Impact of lowering food prices on supply with addition to fall in demand due to
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3INTRODUCTION TO ECONOMICS
References
Alston, J.M. and Okrent, A.M., 2017. Introduction. In The Effects of Farm and Food Policy on
Obesity in the United States (pp. 1-12). Palgrave Macmillan, New York.
Thirlwall, A.P. and Pacheco-López, P., 2017. Economics of development: theory and evidence.
Springer.