Buffer Stock Scheme Essay Writer

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  1. I have the January 2011 AQA Unit 1 exam to do as a practice, the question is 'Evaluate the case for and against using a buffer stock scheme to stabilise the price of a commodity such as sugar or tin.'

    I have arguments for such as it prevents fluctuations, helps farmers to maintain high prices and can secure future supply.

    Against, that the success depends on ability to estimate average price over a period of time, difficulties financing it, changes in demand patterns.

    Any other ideas to help?

  2. Hi,

    I did this question as my actual exam in January and I focused quite a lot on the commodity market and why it is unstable, inelastic supply and demand, speculative buying, volatile supply due to weather and unpredictable situations. Then you can talk about how a buffer stock is supposed to work (like you said, stabilises the price etc.) and then talk about where it might fail (high administrative cost, opportunity cost, the target price is often set too high due to political pressures) and then maybe end the essay with other possible methods of intervention, finally summarise all the points made and state whether a buffer stock is the right way to go about stabilising the prices (remember to quote the extracts!)
    (Original post by hannahhh13)
    I have the January 2011 AQA Unit 1 exam to do as a practice, the question is 'Evaluate the case for and against using a buffer stock scheme to stabilise the price of a commodity such as sugar or tin.'

    I have arguments for such as it prevents fluctuations, helps farmers to maintain high prices and can secure future supply.

    Against, that the success depends on ability to estimate average price over a period of time, difficulties financing it, changes in demand patterns.

    Any other ideas to help?

  3. i hated that question, not much too talk about, instead i opted for the second question, whether government should intervene and provide flood defences for people live in flood potential areas.

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