A report produced by the OECD suggests that global food prices will increase substantially in the next 10 years. Which of the following would likely cause food prices to rise during this period?

Question

Quizplus · Accepted Answer

Adverse weather conditions, such as droughts or floods, can lead to lower crop yields and reduced production which in turn can lead to higher food prices due to supply shortages. Option A suggests an increase in supply which would result in lower food prices. Option C suggests a rightward shift in the supply curve which would also result in lower food prices. Option D suggests price controls which could distort the market and potentially lead to shortages or surpluses, but it is not a factor that would directly cause food prices to rise.

A Report Produced by the OECD Suggests That Global Food