Price Theory and Price Elasticity: Using the article: "China sees shortfall in grain output".

Price Theory and Price Elasticity: Using the article: "China sees shortfall in grain output". In the article which I have chosen that appeared in the Bangkok Post on Wednesday the 5th 2003, regarding the shortfall and rise of price of Chinas grains. The article focuses on various types of grains including Rice, Wheat and Maize and the price increase they have gone through due to the governments attempt to cut down stockpiles, after a record high …

…efforts to raise farming incomes, preserve cropland and increase grain production capacity, to ensure the farmers will have enough food and will be able to produce more grain for themselves and others in the coming years. All of this shows that it is necessary to know Price Theories and Elasticity of things for business and government decisions, for them to make good profit and welfare decisions in the future and not just go by guessing.