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Economics

In the News

Price mechanism in action - tobacco farmers chasing a sweeter crop

Graham Watson

2nd January 2020

This BBC article looks how Greek tobacco farmers have switched to the production of stevia, a zero calorie, sugar substitute (natural sweetener).

It's a lovely example of how markets allocate scarce resources in response to changing patterns of consumer demand. Stevia powder on the supermarket shelves costs around €120 per kilo compared with a kilo of sugar for €0.83 euros. The global market of Stevia was estimated to have a value of $490 million in 2017, and is forecasted to reach to about $771 million by 2022.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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