Understanding Buffer Stock Schemes and the Common Agricultural Policy

The video tutorial covers buffer stock schemes as a government intervention to stabilize commodity prices. It explains the dynamics of commodity markets, highlighting the price inelasticity of supply and demand. The operation of buffer stock schemes is detailed, showing how they stabilize prices by buying and selling commodities. Challenges such as storage costs and financial limitations are discussed. The video also touches on the EU's Common Agricultural Policy, which historically provided guaranteed prices to farmers, leading to inefficiencies and surpluses.

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