Sunday, February 17, 2008

Unit 1: The price of cauliflowers

The BBC reports that the mild winter and early spring has produced an excess of Cauliflower for growers in west Cornwall, which has forced their prices down.


< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7220000/newsid_7220200?redirect=7220235.stm&news=1&bbram=1&nbwm=1&bbwm=1&nbram=1 >

a) Using a supply and demand diagram, explain why the price of cauliflowers has fallen
b) Use the supply curve to explain why some farmers are ploughing the cauloflowers back in to the soil rather than selling them in the market

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