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!
AQA econ unit 1 volatile prices Watch
- Thread Starter
- 12-05-2013 18:23
- 12-05-2013 18:29
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.