MAKING OF A NEW NATION 1776 1800
THE FRENCH REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Grain scarcity greatly reduced the supply of bread.
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The Economy was bad and Bakers had to bump their prices to avoid bankruptcy.
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The King demanded it.
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Grain scarcity greatly reduced the demand for bread.
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Detailed explanation-1: -An increase in the bread price will increase the quantity supplied for bread by the law of supply. This means that the change in good price only causes the movement along the supply curve. Other supply determinants rather than price will cause the shift of the supply curve.
Detailed explanation-2: -A 1 percent increase in fertilizer prices, which have climbed recently on the surge in natural gas prices, boosts food commodity prices by 0.45 percent. A 1 percent increase in oil prices increases food commodity prices by 0.2 percent.
Detailed explanation-3: -Bread was what people mainly ate. If they price of their food doubled then they might starve. The price doubled because France was in a financial crisis.
Detailed explanation-4: -Because there was less supply than there was demand, the price of bread increased by 200% by 1789. Since the 3rd Estate, which was made up of most of France’s population, was being taxed heavily, most people could not afford to pay double the money for bread in addition to high taxes.