Explain why the dry weather will lead to a rise in the price of bread.

Use the following information to work Problems 7 and 8.

Pricier bread and cereal. Coming soon?

Wheat and corn prices surged about 10 percent last week and could hit the items in your grocery basket by mid-summer. It’s a case of two extremes: dry weather conditions in parts of the southern United States and in Europe have sparked fears of a supply crunch of wheat, while supplies of corn are being threatened by flooding and heavy rain in the Midwest.