French flour prices rise after poor harvest - British Baker - 5 views
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atembeshu fonge on 21 Sep 15Due to the bad weather in France, the quality of wheat used to make bread have been affected leading to an increase in the price of flour. Other factors that lead to the increase in prices include the Ukrainian crisis and the Russian ban on wheat exports. Because flour and wheat have many uses, the demand for these products will hardly be affected which makes them inelastic. Supply on the other hand will decrease because of the bad harvest faced by farmers.
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camiellalouisa sehidou on 02 Oct 15Some key words "like determinants of price" of price which we learned in that week could have been used to explain why season affected the price of flour. With demand steadily increasing and supply diminishing Fonge could've talked about PED which she brought up but never used the term. In her comment she said wheat and flour being inelastic are not affected by any change in price so wheat has a low PED.