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Why have food prices increased while food stocks have decreased?

A) Increased demand and decreased supply
B) Increased supply and decreased demand
C) Decreased supply and increased demand
D) No correlation between prices and stocks

User Jschorr
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1 Answer

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Final answer:

Food prices increase due to decreased supply and increased demand, similar to how seasonal foods fluctuate in price. The quantity of loans made in financial markets rises with either an increased supply of loans or increased demand for them.

Step-by-step explanation:

The increase in food prices despite decreasing food stocks can be attributed to a decreased supply and increased demand. When there is less of a product available, such as food stocks, and the demand for that product does not decrease correspondingly, prices tend to rise.

This situation is particularly common with seasonal foods, which may be inexpensive when they are plentiful but become more expensive when they are out of season and their availability decreases. Similarly, the financial market's dynamics regarding loans are based on supply and demand. An increase in the quantity of loans made and received would typically result from a rise in the supply of loans or a rise in the demand for those loans.

User Randy Tang
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