Q5. Consider the market for quinoa discussed in the textbook in Unit 8. The changes shown in Figures 8.10a-c can be analysed as shifts in demand and supply.

i.Suppose there was an unexpected increase in demand for quinoa in the early 2000s (a shift in the demand curve). What

ii.Assuming that demand continued to rise over the next few years, how do you think farmers responded?

iii.Why did the price stay constant until 2007?

iv.How could you account for the rapid price rise in 2008 and 2009?

v.Would you expect the price to fall eventually to its original level?

The Economy - The core team