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Monday, 31 December 2012

Unit 1: Chiponomics!

Poor weather has caused the price of potatoes to rocket from £90 to £250 per tonne! 

This increase in price has forced some chip shops to increase the price of chips - 10p more for a bag of chips! 

Watch this video HERE for more information!

Things to think about:


  1. What is the PES of potatoes in the short run and the long run?
  2. Are there substitutes?
  3. What is the impact on complementary goods?
  4. What are possible solutions to this increase in price?

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