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War between Ukraine and Russia and market equilibrium Ukraine is one of the biggest exporters of sunflower oil in the world. War between Ukraine and

War between Ukraine and Russia and market equilibrium

Ukraine is one of the biggest exporters of sunflower oil in the world. War between Ukraine and Russia hence significantly impacted the available stock of the sunflower oil in the world's market. Sunflower oil is an input to manufacture biscuit. Consider that the market for biscuit is in perfect competition and initially at the equilibrium (10 marks).

  1. Explain the impact of the war on the supply, demand, equilibrium on market of biscuit (5 marks).

Give a graphical representation

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