Wednesday, November 9, 2011

2008 Rice Bubble

In 2008, there was a brief food crisis and bubble in the price of rice.  Planet Money has an audio podcast where they describe the rice bubble and the ways in which governments interfered with the laws of supply and demand to cause the crisis.  They conclude that there was always plenty of rice, but it just wasn't getting to the people who wanted to buy it.

This is another good example of the applications of the laws of supply and demand that we talk about in class, so I highly recommend listening to it.

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