Wednesday, April 01, 2009

Unit 1: The price of tea

These 2 BBC reports suggest that tea is set to rise in price in the shops

http://news.bbc.co.uk/1/hi/business/7973857.stm
http://news.bbc.co.uk/1/hi/world/africa/8213597.stm

a) In each case, using a S&D diagram, explain why the world price of tea is set to rise
b) Using a S&D diagram, explain why this will lead to an increase in the price of tea in UK shops

You may also find this post from economicshelp useful

http://www.economicshelp.org/blog/economics/price-of-tea/

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