Monday, July 07, 2008

Unit 1: A market in disequilibrium: Allotments

From Geoff Rileys blog comes this interesting tale of allotments in the UK

http://www.tutor2u.net/blog/index.php/economics/comments/cross-elasticity-demand-for-allotments/

a) Using a S&D diagram, show how the market for allotments is in disequilibrium
b) Which factors have caused the demand for allotments to increase and shift the D curve to the right?
c) Using a S&D diagram, explain the effect on the market of this increased demand

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