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The Nature of Markets - Effect on Supply

Now look at the effect on supply. The bird flu issue might mean that millions of birds might have to be killed if the disease was to reach the UK. What do you think would happen to the market for turkeys now?

Again, use the slider to move the supply curve to the right if you think supply will rise and to the left if you think supply will fall and then watch what happens to price and the amount bought and sold.

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No Flash plugin detected: Demand and Supply. Supply has increased from 50 to 100, this creates a period of surplus. The price is forced downwards and the quantity bought and sold will rise until an equilibrium point is found (a price of 2.49 and a quantity bought and sold of 74).

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