In the News
Externalities and the Supply Crunch

8th September 2021
This story is a consequence of the current supply chain issues, which have limited the access of water companies to the chemicals required to treat waste water.
Water companies face chemical supply disruption https://t.co/m9rMdm1XYz
— BBC News (UK) (@BBCNews) September 7, 2021
"The UK Environment Agency.. told water firms they can temporarily reduce the amount of chemicals used for the treatment of waste water." Because of "problems in the chemical supply chain caused by the lorry driver shortage."
As a result, the government have temporarily suspended legislation governing their use.
Is it a dangerous precedent? And if there's a shortage, won't the market simply have increased the price of chemicals and shouldn't the water companies be bearing that cost? They are, after all businesses, and risk is an inherent part of any market?
And what about the external costs? Have these been quantified?
You might also like

Supply and demand in action - why the price of milk has soared in the UK
20th February 2023

Warburtons battles soaring cost-push inflation
19th January 2023

The True Cost of our Obsession with Superfoods
15th January 2023

Is the UK sleep-walking into a food supply crisis?
6th December 2022

The Economics of Britain's Egg Shortage
26th November 2022

Jaguar Land Rover reduces production
26th November 2022
Wages and Cost Push Inflation - Chain of Reasoning
Practice Exam Questions

Energy Price Crisis - Assessing the Impact on Businesses
29th August 2022