Unit 1: Rising costs and rising consumer prices

Three stories from the BBC today about firms wishing to raise prices

http://news.bbc.co.uk/1/hi/business/7252144.stm Cadburys

http://news.bbc.co.uk/1/hi/business/7252328.stm Scottish and Newcastle

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7250000/newsid_7252900?redirect=7252911.stm&news=1&bbram=1&bbwm=1&nbwm=1&nbram=1&asb=1 > Australian wine

a) Using a supply and demand diagram, explain why the increased costs of production will lead to an increase in the prices that consumers will have to pay for Cadburys and S&N products
b) Using a supply and demand diagram, explain why the price of Australian wine is rising