Explain cost of production and forign demand is rising


Suppose a government economist predicts that this spring's excellent weather will result in larger crops of wheat and canola than farmer had expected. But the economist warns consumers not to expect prices to decrease because the cost of production is rising and forign demand for Canadian crops is increasing. "The classic pattern of supply and demand won't work this time," the economist says. Discuss his observation.

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Microeconomics: Explain cost of production and forign demand is rising
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