Complementary goods, derived demand, elasticity - it's all here with Ice Cream Prices

Click here for a recent article on The price of vanilla has soared over the last two years, sending a chill down the spine of UK ice-cream makers.








Questions for you to attempt:

Why has the price of vanilla gone up? (4 marks)
What does the article suggest about the elasticity of supply of vanilla? (6 marks)
Assess the impact of rising vanilla prices on the producers of ice scream. (12 marks)