Discovering Mechanics: Louis Renault e-book (RENAULT) | Page 193

Floor and ceiling price effects
 Agricultural prices always affected by energy prices
 But as fossil fuel energy prices reach or exceed the energy
equivalent of agricultural products, energy market creates
demand for agricultural products
 Higher energy prices now affecting output prices
 OECD estimates show that the effect of oil prices on
production costs is comparatively much stronger than that
on increased demand for biofuel, but results are sensitive to
oil price.