demand and supply, price elasticity, price determination, consumer behaviour and preferences, substitute goods
Why did banana bread become the unofficial snack of lockdown? With millions stuck indoors during the Covid-19 pandemic, home baking became one of the most popular pastimes, causing an unexpected surge in demand for flour. Before the pandemic, the flour market was relatively stable, with demand and supply in balance. In economic terms, this is called being in equilibrium, where the quantity of flour that consumers want to buy matches the amount of flour that producers are willing to sell. This equilibrium is represented in Figure 1.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
