MGEA02H3 Lecture Notes - Lecture 4: Substitute Good, Price Ceiling, White Bread
24 Feb 2015
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Shifts in demand and supply: how they affect equilibrium. And ta office hours start this week as well (in ic-225) An example of what we need to be able to understand: Beef prices hit records ahead of barbecue season. Beef prices are hitting all-time highs as supply tightens in the united states thanks to drought- stricken grasslands, expensive corn feed and a surge in demand after a cold spring kept north americans away from the grill. The cattle herd in the united states is the smallest it has been since 1952, by some estimates. The recent string of droughts has hammered ranchers needing grass, corn, and hay to keep their animals fat. These factors helped push wholesale beef prices to successive record highs last week. Concerning crop reports are adding to the pressure. The wholesale price for beef hit . 095 (u. s. ) per pound friday, according to the united states. Department of agriculture, after hitting record highs every day last week.
