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Demand and supply in action - tea prices surge

Tuesday, August 04, 2009
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The new Edexcel GCSE Business Unit 1 specification encourages students to look at commodity markets to develop their understanding of how demand supply interact to determine market prices. 

Here is an excellent example of how two significant shifts in the demand and supply curves can affect the global price of a commodity.  Failing crops and surging demand for tea is pushing prices higher.

As a leading exporter of tea, Keyna is benefitting from the surge in prices, after suffering from higher production costs in recent years.



 

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