Then consider the multiple steps (markets) involved in producing and distributing the loaves of bread that you find in your local supermarket.

Then 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.