Demand and supply in action - Lamb prices surge as supply drops, demand rises

Great example here of how the market price for lamb is affected by both demand and supply side factors.

Here we see the market knocked off its equilibrium by a shift outwards of the demand curve for lamb caused by what seems to be a change in preferences (PASIFIC - Fashions and tastes in our mnemonic) and a shift inwards of the supply curve blamed, amongst other things, “on the ending of a government support program and extended drought followed by recent flooding” (PINTSWC - cutting of Subsidies and bad Weather).