Evaluate the role of buffer stock systems

A buffer stock system is typically used in a market for a commodity, such as wheat, which may be vulnerable to large changes in supply. This could be due to weather for example, and it is not uncommon for countries to often go an entire season without being able to produce a crop. Buffer stock schemes are used to try to reduce volatility in the supply of a commodity and keep prices from moving too far from the equilibrium in a normal year. In its simplest form, it involves storing more when crop yields are strong to offset the time periods when crop yields are low.

Related Economics A Level answers

All answers ▸

Evaluate policies which a UK government could use to control the activities of oligopolists.


Why do rising house prices cause an increase in aggregate demand?


If the Marginal Social Cost of Producing a good is higher than the marginal private cost -what has happened?


Explain the assumptions behind perfect competition and how firms behave under this market structure.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy
Cookie Preferences