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    Ive got a quick question about how volatile prices are a market failure? i know how to solve them through buffer stock scheme etc but want to know how to explain the market failure (volatile prices) at the start of a 25 marker

    thanks a lot for your help!
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    you can probably say how it creates uncertainty, Businesses are unlikely to invest a lot of money into something that changes so much. Same with consumers. May lead to a misallocation of resources.
 
 
 
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