Will it

Rise or Fall?
Rise

Fall
 Soybeans
Soybeans are used for oil, animal feed, soy milk, and soy flour.

Soybean oil can now be

used as a renewable
ingredient in the production
of biodiesel fuel.
If soybeans can now be
used in biodiesel, will the
DEMAND rise or fall?
 Soybeans
Soybeans are used for oil, animal feed, soy milk, and soy flour.

Soybean oil can now be

used as a renewable
ingredient in the production
of biodiesel fuel.
If the demand for
soybeans is high, and the
supply is low, will the
PRICE rise or fall?
 Corn
Field corn is grown primarily for use as livestock feed.

The starch in corn can be

distilled and converted to
ethanol, an additive to
petroleum-based fuel.
What happens to the
DEMAND for corn now
that it is used for fuel as
well as livestock feed?
 Corn
Field corn is grown primarily for use as livestock feed.

The starch in corn can be

distilled and converted to
ethanol, an additive to
petroleum-based fuel.
What happens to the
PRICE of corn now that
it is used for fuel as well
as livestock feed?
 Wheat
Wheat is grown primarily to be ground into flour

Drought results in low

wheat yields.

What happens to the

SUPPLY of wheat during
a year of drought?
 Wheat
Wheat is grown primarily to be ground into flour

Drought results in low

wheat yields.

What happens to the

PRICE of wheat if supply
goes down, and demand
stays the same?
 Eggs
Flu burung berdampak pada ribuan
burung di peternakan, banyak di
antara burung ini yang mati.
(The bird flu infects thousands of
egg farms, and many laying hens
are lost)

What happens to the

SUPPLY of eggs as a
result of the bird flu?
 Eggs
The bird flu infects
thousands of egg
farms, and many
laying hens are lost.
If egg supply goes down,
but demand stays the
same, will egg PRICES
rise or fall?
 Milk
The nutrition of feed for
dairy cows improves,
leading to a significant
increase in milk production.

If the supply of milk goes

up, but demand stays the
same, will milk PRICES
rise or fall?
 Milk
Penelitian baru menunjukkan
kalau susu rendah lemak
membantu mengurangi berat
badan (diet)

Will the DEMAND for

milk products rise or fall?
 Review
If the supply goes up, but
demand stays the same…
what happens to the PRICE?

If the supply goes down, but

demand stays the same…
what happens to the PRICE?