1. Others argue that the world's grain supply is temporarily low because farmers in Russia and other former Soviet states have experienced political turmoil and bad weather. Also, farmers in the United States are seeing the end of government farm policies that keep the prices of farm products artificially high. In future years, they see farmers worldwide making greater use of technology and scientific farming methods.

Explain what these people are expecting to happen to grain prices in the future.

2. If a product has inelastic demand, would the business or the consumer ultimately have to pay the cost of an increase in producing the product?