When bad weather damages crops such as wheat and corn, food manufacturers such as Kraft often have to pass the additional cost of scarce supplies along to their customers in the form of higher prices.

Question

Quizplus · Accepted Answer

When the supply of crops is reduced due to bad weather, the cost of these raw materials increases. Food manufacturers, facing higher production costs, may raise prices to maintain profitability.

When Bad Weather Damages Crops Such as Wheat and Corn