AS Paper 1, June 2022Introduction to Markets and Market Failure
AS Paper 1, June 2022, Q5(a)
Explain one reason why flour producers might find it difficult to increase quantity supplied in the short run.
Short answerExplain3 marks
Context
In March 2020, a substantial increase in the demand for flour resulted in the retail price of flour increasing. Despite the price rises, the supply of flour failed to keep up with the increased demand.