Which one of the following is the most likely effect of these floods on the market for potatoes?
A The demand for potatoes will increase
B The demand for potatoes will decrease
C The price of potatoes will increase
D The price of potatoes will decrease - Edexcel - GCSE Business - Question 17 - 2015 - Paper 1
Question 17
Which one of the following is the most likely effect of these floods on the market for potatoes?
A The demand for potatoes will increase
B The demand for potatoes... show full transcript
Worked Solution & Example Answer:Which one of the following is the most likely effect of these floods on the market for potatoes?
A The demand for potatoes will increase
B The demand for potatoes will decrease
C The price of potatoes will increase
D The price of potatoes will decrease - Edexcel - GCSE Business - Question 17 - 2015 - Paper 1
Step 1
The price of potatoes will increase
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Answer
In the case of floods, the supply of potatoes would likely decrease due to crop damage and reduced availability. This decrease in supply can lead to an increased price for potatoes. According to the laws of supply and demand, a reduced supply, while demand remains constant or increases, typically results in higher market prices.