THE PRICE OP WHEAT 139 



(4) The degree of competition which may affect the 

 supply at a given time or place. 



(5) The establishment or abolition of trade re- 

 straints by commercial treaties. For example, 

 consider the probable effect on Canada's wheat 

 acreage if the United States tariff on wheat 

 should be abolished. 



(6) The facilities for or hindrances to trans- 

 portation. This factor was well illustrated 

 at the close of 1914 when the Russian supply 

 was held up owing to the closing of the 

 Dardanelles to trade. 



(7) The variations in acreage resulting from 

 variations in price. 



(8) Improvements in methods of culture; e.g., a 

 better rotation of crops. 



(9) The degree of the fertility of the soil. 



(10) New systems of agriculture extending the 

 wheat regions; e.g., "dry-farming." 



(b) Factors Operating on the Demand Side. The 

 demand for wheat at a given time is indicated by the 

 amount of wheat which will be bought in a market. 

 Causes effecting a variation in demand are: 



(1) A change of taste in rye-eating and rice-eating 

 countries due to a rise in the standard of living. 



(2) A diversion from the consumption of wheat to 

 that of more flesh meat, owing to a rise in the 

 standard of living in wheat-eating countries. 



(3) A decrease in consumption caused by a decrease 

 in population and other disturbances due to a 

 war. 



(4) The increase of population in such countries 

 as Russia, where the taste for wheat bread has 

 been acquired. 



(c) The Equilibrium of Demand and Supply. Under 

 these two sets of influences prices fluctuate from day to 



