Interesting and accessible information, links, video and more for students, teachers and anyone looking for an understanding of economic issues.

Supply of food - shift in the supply curve

Farmers have announced that they are looking at a particularly bad harvest this year.  With a drought at the beginning of 2012 followed by too much rain for the rest of the year, it has been a difficult time for a range of crops.

From an economist's point of view, these crops are sold directly to consumers but are also commodities and raw materials used in the manufacture of other products.  The problems with the supply will cause a shift in the supply curve to the left for these products and will also hit the supply curves for products which use these crops as raw materials.  Read the article, have a think about the knock-on effects of the price rises and perhaps draw a supply and demand diagram for an associated product which may be affected.

Graphic showing pressure on food prices in the UK