PRICES OF PRODUCTS 



ply increases relatively to the demand, the price 

 always being such as will form an equilibrium be- 

 tween demand and supply. 



Wheat can be shipped anywhere in the world, 

 so that it is the wheat crop of the whole world, 

 and the demand of the entire population of the 

 earth for wheat, that must be taken into account 

 in any attempt to work out the conditions which 

 determine the price of wheat at any given time. 

 Many countries produce more wheat than they can 

 consume, w 7 hile other countries draw a part of 

 their supply from abroad every year. The most 

 important countries having a wheat surplus are : 

 the United States, Canada, Argentina, Chile, Uru- 

 guay, Austria-Hungary, Bulgaria, Rumania, Rus- 

 sia, Turkey, British East Indies, Australasia, and 

 North Africa. The most important wheat- 

 importing countries are : Great Britain, Belgium, 

 Denmark, France, Germany, Greece, Italy, Neth- 

 erlands, Portugal, Spain, Norway and Sweden, 

 Switzerland, Japan, and China. 



Wheat is sent from the United States to Eu- 

 rope, where it competes with wheat brought from 

 India. Wheat is sent from India to China and 

 Japan and there meets the product of the great 

 wheat farms of California, Washington, and Ore- 

 gon. Thus we see that the commerce in wheat 

 is world-wide and the price of wheat is determined 

 by the supply and the demand upon a market 

 which is world-wide. Hence it should not be ex- 



