Economics Crisp Inflation

Section A: Introduction & Research Process 

Introduction

  • To investigate the impact
  • the inflationary crisis has had on the potato crisp market
  •  To investigate the impact the inflationary crisis has had on the sunflower oil market.

Aims(Crisp)

(1) To investigate the impact of high inflation on the supply of crisps.

(2)To investigate the impact inflation has had on the demand for crisps

(3)To investigate the changing prices in the crisp market.

Research Process

Crisp Manufacturers use a wide range of ingredients however one of the most frequently used is sunflower oil. Recently though, a war has broken out between Russia and Ukraine which are the two largest sunflower oil suppliers in the world. Together they produce more than 50% of the total sunflower oil production in the world. Unfortunately for the producers, the war has meant a reduction in labor as many workers have volunteered to join the front lines in Ukraine.

An increased number of bombings and scorching of oil fields (reducing supply) as well as decreasing affordable transportation routes, due to the rising price of oil and the need to hire escorts on transport routes during a wartime, has meant a reduction of supply of sunflower oil for producers of potato crisp and a price hike too.