Consider the multiple steps (markets) involved in producing and distributing the loaves of bread that you find in your local supermarket. Explain to the Russian official how the free market accomplishes this rather impressive task.

You can use multiple posts and discuss and illustrate each step of the supply chain. Or you may focus on the consumer-retailer-baker part of the supply chain. Either way be clear and specific about how the changes in demand lead to changes in supply at each stage.

Remember to refer to the appropriate graph(s) in the Supply and Demand Guide as you examine the various markets involved. If you wish to draw an appropriate graph and attach it to your post you may, but that is not required. (If you do, be sure to explain the graph in your post - but don’t attach your post, just the graph).