The Economics on Wheat
Business Economics
the economics on wheat
Table of content
Introduction
Part I: Economic factors determining the price of wheat.
Cost of production
Demand and supply
Elasticity
Market Structure
Part II: How Heineken brewers can pass on the recent increase of wheat prices
to their customers.
Consumer surplus and marginal benefit
Price discrimination
Introduction
In de first part of this paper I will be going into the main economic factors that determine the price of wheat by describing the mean features of the market mechanism: costs of production, demand and supply, market structure and elasticity.
In the second part of this paper I will focus on how the Heineken brewers can pass on the recent increase of wheat prices to their customers.
Part I: Economic factors determining the price of wheat.
Costs of production
Costs of production (with production factors being land, labour, capital and enterprise) are important to a firm because it is one of the factors determining the price at which