A fantastic example of market forces in action here as petrol prices are anticipated to fall below £1 a litre for the first time in many years.
Activity: Use your understanding of economic concepts to explain why motorists will soon be paying less at the pumps.
Extension: Is this a good thing?
Read this article about this year’s most eagerly awaited event: the pumpkin harvest.
Task: Using your understanding of demand and supply, demonstrate how this summer’s wet weather will affect the price of pumpkins as Halloween approaches.
Your answer should include a diagram (drawn neatly) and an explanation of what is happening in the market. You should write no more than one side of A4.
Understanding the messages that price communicates is crucial to understanding the market mechanism. This presentation should help you.
Watch this video before our next lesson and try to understand the key elements of Adam Smith’s landmark theory.