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How do the food shortage and subsequent famine demonstrate the economics of supply and demand?
Chapters 5 and 7 offer an in-depth look into how supply and demand affected the Malawians during the food crisis. The flood and drought caused severe food shortages: people's reserves ran dry within four months and even the big grain silos of the estates stood empty. With less maize to go around than usual, prices begin to go up. In the first week of October, the usual prices double from 150 kwacha to 300. People start to search for other food, but even gaga is rapidly selling out at the markets. People start to sell their livestock in order to buy maize. This in turn...
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