Wednesday, 4 November 2009

Sugar and Milk

Dear Lower Sixth

This week's homework is some practise on supply and demand factors.  It is in two parts.  The first is to answer ALL the questions on a previous post about sugar.  The post and questions are here.

The second is this :

This BBC article explains that the price of milk in the EU is falling

http://news.bbc.co.uk/1/hi/business/8289976.stm
http://news.bbc.co.uk/1/hi/business/8289972.stm video

a) Using a diagram, explain why the price of milk is falling
b) Why are farmers dumping milk and witholding supplies?
c) Using a diagram, show the effect of farmers witholding supplies on the price of milk

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