Q&A - Demand and Supply in action

Sales of strawberries in the 12 months to April were down 9.2%. The value of strawberries sold was also down by 3% to £390million. Have we fallen out of love with the strawberry?

Retailers’ claim that price is the key factor. As household budgets are squeezed during the recession consumers are doing without or opting for a cheaper alternative. Producers on the other hand are blaming poor harvests for the lower sales.

As Wimbledon approaches we all think of strawberries and cream - 27,000kg of strawberries will be eaten during the tennis tournament, accompanied by 7,000 litres of cream!

Questions

1. What relationship is there between strawberries and cream? (1)
2. Using a demand and supply diagram explain how an increase in the price of cream might affect the market for strawberries. (5)
3. Using a demand and supply diagram explain how “household budgets being squeezed” and “poor strawberry harvests” will affect the market for strawberries. (6)

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