Japan Faces a Rice Crisis as Price Nearly Doubles for Food Staple

Correct! - Wheat and rice as substitutes in consumption. A wheat shortage raises the price of wheat and increases the demand for rice. An increase in tourism in Japan increases the demand for many goods in Japan, including the demand for rice.

That's Right! - The price of rice in Japan nearly doubled over the past year. This rise in price occurred because wheat shortages and booming tourism increased the demand for rice and a poor harvest decreased supply.

Well Done! - With the increase in demand and decrease in supply, a shortage arose at the original price. As the price rose, the quantity demanded decreased, the quantity supplied increases, and the shortage was eliminated.