Sunday, June 01, 2008

Unit 1: The supply of milk

A good article from the Times which helps explain the upward sloping supply curve

http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article4029326.ece

a) Define supply
b) What does the article say is happening to the supply of milk as the price of milk for farmers falls?
c) Using the definition, explain how can this be the case as cows don't stop producing milk if the price the farmer gets falls!

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