Home > Supply & Demand > AS Revision – Buffer Stocks

AS Revision – Buffer Stocks

Another very good video from Phil Holden in which he explains a buffer stock scheme. 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. Specifically, commodities are bought when there is a surplus in the economy, stored, and are then sold from these stores when there are economic shortages in the economy.

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