Wednesday, December 14, 2011

Unit 1: A market in disequilibrium: Butter in Norway (believe it not!)

I love this story from Planet Money

http://www.npr.org/blogs/money/2011/12/13/143632326/a-rich-country-runs-out-of-butter?ft=1&f=93559255

with a follow up from the BBC

http://www.bbc.co.uk/news/world-europe-16170808

a) Can you use a S&D diagram to explain this problem?

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