Buffer stock schemes

So I'm retaking Econ 1 tomorrow, and ive just been hoping buffer stocks don't come up because I all I know about them is its something to do with stabilising prices.

So can anyone actually help me understand what they are and how they are or else tomorrow I'm doomed if they come up lol

Reply 1

amelienine

12

There's basically a minimum and a maximum price. Government buys surplus stock if price falls too low, government sells if price is too high.

Here's a page to help: http://learneconomicsonline.com/bufferstock.php

Reply 2

Haamoo7

3

Original post by pumbting

So I'm retaking Econ 1 tomorrow, and ive just been hoping buffer stocks don't come up because I all I know about them is its something to do with stabilising prices.

So can anyone actually help me understand what they are and how they are or else tomorrow I'm doomed if they come up lol

Is this for Edexcel? The new Edexcel exam doesn't have buffer stock schemes anymore, does it?

Reply 3

pumbting

OP

2

Original post by Haamoo7

Is this for Edexcel? The new Edexcel exam doesn't have buffer stock schemes anymore, does it?

I'm doing AQA, but I hope its not in there anymore, haven't seen a question about it since 2011 but just in case :s-smilie:

Reply 4

pumbting

OP

2

Original post by amelienine

There's basically a minimum and a maximum price. Government buys surplus stock if price falls too low, government sells if price is too high.

Here's a page to help: http://learneconomicsonline.com/bufferstock.php