Home / Questions / The rice prices have increased by 70% since last year.
The rice prices have increased by 70% since last year.
This trend has been accelerated in recent weeks and several parts of the world have
already experienced food riots and protests over these price increases.
Several rice producing countries have imposed limitation on rice export and even
retailers in the United States have limited the quantity of rice each customer can buy.
Increase in population, and draught in some rice producing areas are mentioned as contributing factors in this crisis.
Assume that the rice market is a perfectly free market and was in its long run equilibrium prior to these events.
Comment on what will happen in the rice market in the short and long run.
Nov 08 2017 View more View Less
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