What would be the impact of an outbreak of bird flu on the price of eggs in the UK?
A bird flu outbreak would reduce the supply of British eggs, from S to S1, causing prices to rise from P to P1. (A diagram would be then drawn to show the supply curve contracting inwards, causing a new supply & demand equilibrium point to be reached where the price was higher)
AG
Related Economics A Level answers
All answers ▸Explain why monopolies may be an undesirable form of market structure
How is unemployment related to causes of inflation?
Please explain what price elasticity of demand is, in the context of simple supply and demand of a good in a competitive market.
Between 2010 and 2015 the average price of tea in the UK increased from £7.20 per kilo to £8.48 per kilo. Over the same period the quantity of tea purchased fell from 97 million kilos to 76 million kilos. Find the price elasticity of demand