examples of supply and demand

what factors cause the price of lamb to decrease?

increased grass growth which increase supply

what causes the overall demand of lamb to reduce?

on-going war in Ukraine affects global trade

what is one reason why when supply reduces, the price of lamb increases?

weak £ against euro reduced imports to UK - reduced world production

what are the main influences if market failure?

• market power - ability to influence prices,

• externalities - outcome in a market affects more than just the producers and consumers

what are the 4 types of market failure in agriculture?

• unstable markets - volatile prices/supply

• inequality - low/volatile income for farmers

• externalities - environmental costs of intensive farming,

• monopsony power of food purchases - effect of supermarket dominance on price