|
|
Agricultural Marketing and Price Analysis $89.00 As refreshing as its tone is the innovative approach this book takes to economic theory and agricultural marketing strategies. This book offers versatility by covering a wide range of topics that include both traditional economic theory and organizational economics. Novice readers will gravitate to the inviting writing style and colorful examples. All in a single source, readers will find contempo… |
|
|
Agricultural Marketing: Structural Models for Price Analysis (Routledge Textbooks in Environmental and Agricultural Economics) $50.49 The price of food has become very volatile in recent years for a variety of reasons, including a strengthened connection between the prices of agricultural commodities and other commodities such as oil and metals, more volatile production due to more frequent droughts and floods, and a rising demand for biofuels. Understanding the determinants of agricultural commodity prices and the connections b… |
|
|
Agricultural Prices and Commodity Market Analysis $43.20 This book features the application of economic theory to agriculture and the food industry, using quantitative tools. The blend of theory and application is unique in detailing how demand and supply can be measured and how econometric simulation models may be constructed and evaluated. The volume focuses on forecasting and generating long-term projections as well as discussing the relatively unexp… |
Agricultural Marketing And Price Analysis!
Farms.com Market School: How Grain Prices Are Determined.
Agricultural Marketing And Price Analysis Questions
Is this answer correct?
Here was the original question:
Provide an example of a market where government has imposed a price ceiling or a price floor and use demand and supply analysis to explain the consequence on that market.
The only answer I could get was this:
Governments often seek to assist farmers by setting price floors in agricultural markets. A minimum allowable price set above the equilibrium price is a price floorprice floorA minimum allowable price set above the equilibrium price.. With a price floor, the government forbids a price below the minimum. While the supply curve for agricultural goods has shifted to the right, the demand has increased with rising population and with rising income. But as incomes rise, people spend a smaller and smaller fraction of their incomes on food. While the demand for food has increased, that increase has not been nearly as great as the increase in supply
IS THIS CORRECT? Why, or why not? Thank you 
Yes.
You have gone far beyond the requirement of question but if I was the teacher I will know that you have got the grip on this subject.
Gloomy Days Ahead for Asia’s Housing Markets
Asian property markets, though still relatively unaffected by the credit crunch, will soon be affected by inflation and higher interest rates, warns the Global Property Guide, because of rising food, fuel and other commodity prices.
“Higher food, fuel and other commodity prices affect the housing market negatively in several ways,” says Prince Christian Cruz, senior economist at the Global Property Guide.
“At the micro level, households may postpone their decision to purchase a new house or spend on renovation if they anticipate higher prices. At the macro level, higher food and fuel prices push inflation up. Monetary authorities typically raise key interest rates to stem inflationary pressure,” Cruz explains.
Asian households are particularly vulnerable to recent rises in food prices. The price of rice, the staple in Asian diet, has risen by more than 90% during the last year to March 2008, according the UN Food and Agriculture Organisation (FAO).
The price of other food also has increased significantly. Wheat was up 160% in March 2008 on a year earlier; soy bean oil by 104%, corn by 37%, and sugar by 26%.
Food prices are a key component in the Consumer Price Index (CPI). Their proportional weight ranges from 28% in Singapore, to 33.2% in China, to almost 50% for urban workers in India. High food prices will persist until 2009, according to reports by the FAO, World Bank and the International Rice Research Institute.
The price of almost all commodities is increasing, not only food. The price of light sweet crude oil surged to US$115 a barrel in April 2008, up almost 80% from a year earlier. NYMEX crude oil has been above US$100 per barrel since March 2008.
Many Asian economies which have recently experienced residential real estate price surges such as China, Singapore, Philippines, Hong Kong and India (all of which registered double-digit house price increases in 2007) are under significant inflationary pressure (see table).
Higher inflation and interest rates
Monetary authorities typically raise interest rates to combat inflation. They can also increase the cash reserve ratio (CRR) of banks or sell bonds or other financial instruments to reduce money supply.
The Reserve Bank of India (RBI) raised the cash reserve ratio by 50 basis points in two stages to mop excess liquidity and contain inflationary pressures. The CRR will be 7.75% effective April 26 and 8% by May 10, 2008.
The RBI, similar to other central banks in Asia, left key interest rates unchanged during the first half of April.
However, most analysts indicate the key rates might be hiked in May if inflation continues to be above the official targets
Fears of interest rate hikes cropped up in several Asian countries, particularly in Indonesia and China.
High interest rates affect housing markets in two ways:
1. By discouraging investment and consumption and causing the economy to slow, higher interest rates reduce people’s willingness to spend on housing
2. Higher interest rates discourage borrowing for housing loans.
“The situation is unfortunate because most Asian housing markets have not yet fully recovered from the effects of the 1997 Asian Financial Crisis,” Cruz notes.
“Even with strong house price gains in 2007, property prices in Asia are still below their pre-Asian Crisis peak levels. Despite 31% nominal rise in the over-all residential property price index, Singapore’s prices are still about 10% to 20% below their pre-Asian crisis peak level in real terms,” adds Cruz.
“In the Philippines, even with the 15% increase in condominium prices in 2007, it is still about 47% below its peak level in real terms,” he continues.
The housing markets most likely to be affected by monetary tightening seem to be China, India, Singapore, Philippines and Thailand, which have experienced the largest increases in inflation.
Will Asia tango together?
“With global financial markets interconnected, the world’s economies tend to move together. The synchronicity was observed with the global housing boom – never before in recorded history did so many countries experience so much house price growth all at the same time,” Cruz notes.
“The housing market slowdown may also be synchronized,” he adds. “Inflationary pressures are likely to cause Asia’s central banks to raise interest rates, and slow their housing markets,” he says.
However convergence will not be universal. Where currencies are pegged to the US, housing markets are likely to diverge somewhat from the global adjustment.
Countries such as Hong Kong and the Gulf must follow US interest rates. Unless those countries re-peg their currencies, their central banks cannot raise interest rates. This may lead to higher inflation including in the housing market.
###
Description:
The Global Property Guide is an on-line property research house.
Terms of Use:
On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com. Sites and newspapers found not to be providing a link to us will be removed from our press list.
Economics Team:
Prince Christian Cruz, Senior Economist
Phone: (+632) 750 0560
Cell: (+63) 917 735 2228
Email: prince@globalpropertyguide.com
Publisher and Strategist:
Matthew Montagu-Pollock Phone: (+632) 867 4220
Cell: (+63) 917 321 7073
Email: editor@globalpropertyguide.com
Address:
Global Property Guide
http://www.globalpropertyguide.com
5F Electra House Building
115-117 Esteban Street
Legaspi Village, Makati City
Philippines 1229
info@globalpropertyguide.com
About the Author
The Global Property Guide is a research publication and web site for the high net worth investor in residential property – providing information about the process and benefits of buying property in any country in the entire world. On-line newspapers, magazines, sites, etc wishing to use material from this press release MUST provide a clickable link to www.globalpropertyguide.com. Sites and newspapers found not to be providing a link to us will be removed from our press list.
