An unlikely candidate has become the target of speculation in Chinese markets. We are accustomed to reading articles about large fluctuations in commodities such as coffee and copper, but an article from the Economist reveals a more unglamorous crop now in the limelight: garlic.
Using a supply and demand diagram, explain the fourfold rise observed in the price of garlic. (You should be able to name at least two demand factors and one supply factor)
Is the demand for garlic elastic or inelastic? Discuss.
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