1.

Draw a supply and demand diagram of the global market for wheat incorporating the impact of Russia's war in Ukraine. (The Ukraine is one of the world's largest producers of wheat and wheat is a global staple food.) Explain what happens to supply, demand, equilibrium quantity and price. Consider any information provided on elasticities; if there is no info on elasticity, you can draw a unit elastic curve. Label all areas to be used with the welfare table below

2.

Consider the global market for rice, which is also a major staple food. First, assume that there are many consumers for whom rice and wheat are substitutes. Imagine that after seeing what was happening to the market for wheat, major rice producing countries decide to ban the export of rice (to ensure there is adequate food for citizens since both wheat and rice are major staples).

Draw a diagram of the simultaneous impacts of the export bans and of the change in the wheat market you found in part (a) on the global market for wheat. Consider any information provided on elasticities; if there is no info on elasticity, you can draw a unit elastic curve. No need for a written explanation