Evaluate the Case for and Against Buffer Stock Schemes.
Evaluate the case for and against using a buffer stock scheme to stabilize the price of a commodity such as sugar or tin. S Buffer stock schemes seek to stabilize the market price of agricultural products by buying up supplies of the product when harvests are plentiful and selling stocks of the product onto the market when supplies are low.
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Buffer Stock Essay Sample A buffer stock scheme (commonly implemented as intervention storage, the “ever-normal granary”) is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or, more commonly, an individual (commodity) market.
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A buffer stock scheme (commonly implemented as intervention storage, the “ever-normal granary”) is an attempt to use commodity storage for the purposes of stabilising prices in an entire economy or, more commonly, an individual (commodity) market.(1).
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FREE Use of Buffer Stock as a Means of Stabilising Prices.
Buffer stock schemes seek to stabilize the market price of agricultural products by buying up supplies of the product when harvests are plentiful and selling stocks of the product onto the market when supplies are low. Advantages of a successful buffer-stock scheme.
AS economics Buffer stocks - The Student Room.
Most buffer stock schemes work along the same rough lines: first, two prices are determined, a floor and a ceiling (minimum and maximum price). When the price drops close to the floor price (after a new rich vein of silver is found, for example), the scheme operator (usually government) will start buying up the stock, ensuring that the price does not fall further.
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The buffer stock scheme is a scheme where an organisation buys and sells in the open market so as to maintain a minimum price for a product. It is used mainly on primary products such as agriculture, mining, and etc. It was designed to even out price fluctuations for producers and to maintain production.
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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.
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