Use Of Wheat And Its Importance In Western Civilization

Introduction

Due to high price elasticity of supply, as already noted, any changes in aggregate demand for imports into the left or right the base quantity adjustment with a very small price adjustments. This suggests, in econometric terminology, that the random fluctuations or mistake term is correlated with quantity. If the demand function were normalized with respect to the price, another term would be a gross violation of rudimentary conditions the linear form of academic because the explanatory variable (number) correlates with the error and will lead to conflicting assessments. Therefore, in our form, the demand function is normalized with respect to quantity.

Increasing Demand for Wheat

The world markets for wheat have monopolistic structure with the main part of world exports are concentrated in a few countries such as Canada, the United States and Australia. These three countries, through the interaction of their policies, influence the world of prices of wheat significantly in the past. Any strategy for market stabilization period of the price next requires either demand or supply function be elastic. Almost every geographical area little can be done to elastic demand function. Thus, the programmed aimed at achieving market stabilization period of the price next must therefore work through the changing functions of proposals. Feature suggestions might be made of elastic in one of two ways-through the Office of export/import and/or and storage.

These two technologies have been successfully merged United States, Australia and Canada over the past three decades. Market stabilization period of the price becomes necessary because very often the effects of fluctuations in the world of prior prices wheat is consumers are exporting countries, along with consumers in low-income countries. Therefore, for countries such as United States that allow the transfer of international prior term prices next in their domestic markets, price stabilization and preventing wild fluctuations in the international grain prior term prices next becomes necessary in the interests of its customers (Robert, 56).

Important Of Wheat in the Western Civilization

Among the countries of northern Europe, Great Britain, despite having nearly tripled its wheat crop during the Second World War has to continue to import large quantities of this cereal. It is one of the countries where production is typically more expensive than the acquisition in foreign markets. The rising price of land and labor on the one hand, and the great development of communications, on the other, has made the English bow wheat purchases by foreigners; find it cheaper than they can produce. Sweden, at the end of last century, imported a third of its consumption, has become the exporting country.

The great wheat belt of Europe begins in Hungarian Danube plain, through the Balkans and southern Russia, near the Ural penetrates, forming the largest European wheat bran before the Second World War, can partially offset the production deficit countries, industrial West. Polish the southern plains, the floodplain of the Pannonia Basin in Hungary, the plains of the upper Elbe, the Bohemian and the Lower Danube, Romania ...