A good year for the Rose - demand and supply revision
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It is always nice to have good real world examples when teaching any of the topics in Economics. One such topic is shifts in supply due to weather - agriculture certainly doesn’t get our students excited! There has been an increase in the supply of roses this year due in part to a cold winter and a sunny May.
This takes us nicely into a bit of demand and supply analysis. As many students will be sitting their GCSE Economics exams next week, I thought it might be helpful to go through a few hints and tips for these sorts of demand and supply questions.
Question - With the aid of a demand and supply diagram explain how a sunny May would affect the market for roses. (5)
If we think about the situation here, supply has increased due to good weather. This will cause the supply curve to shift to the right. The first thing you must do is draw a demand and supply diagram, it must be fully labelled (there are marks available for this). Ensure you have the original and new equilibriums marked on.
Always explain in words your diagram. You must first of all state which curve is shifting and which way it is shifting (left or right), then you must explain why this is the case (in this question it is the weather). Finally you must state what has happened to price and quantity.
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