Blog
AS Micro: Commodity Prices
5th May 2011
The economics of volatile commodity prices are a staple feature of many AS micro papers - it gives you a chance to apply your understanding of supply and demand factors and the importance of elasticities of demand and supply in explaining price movements. And also understand some of the consequences of volatile price and output movements for different stakeholders - including consumers, producers and the government. This BBC news article takes a look at the likely direction of world commodity prices and embraces a number of different markets that have appeared on exam papers in the past - so a useful exercise to test your revision is to read through and see how much you get first time. I have put a revision presentation on price volatility in markets on my web site - available here (it does the job for a really good AS micro answer)
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.