Discovering Mechanics: Louis Renault e-book (RENAULT) | Page 194

Floor and ceiling price effects
 Given
large (elastic) demand from energy market
with competitive agricultural feedstocks, energy
market creates a floor price for agricultural
products
 Fossil
fuel
prices
also
create
a
ceiling
for
competitive feedstocks whose price cannot rise
faster
than
energy
prices
without
themselves out of the energy market
pricing