2. The summer of 2007 will be remembered by many in the UK as a time when they were hit by serious floods that have disrupted their lives significantly. Parts of Yorkshire, Gloucestershire and Worcestershire were badly affected. In addition to the serious effects of the floods on peoples houses, large areas of farmland were also badly damaged. Insurance companies are saying that the cost to the industry of dealing with the claims arising out of the floods will run into billions. For buildings in the areas affected, demand for their services is strong and insurance companies have warned households about the damage of so called ‘cowboy builders’. Farmers’ representatives have warned the damage to crops could mean higher food prices as we head into the autumn and winter.
4. About the floods Thousands of people were forced to leave their homes due to severe flooding across England and Wales. Hundreds of families in Lincolnshire, South Yorkshire, Nottinghamshire and Shropshire have been moved to safety.
5. People affected House owners Businesses Farmers About 900 people are using emergency shelters in Sheffield. 700 have left villages near Rotherham, South Yorkshire.
6. Costs The average cost for each flooded home between £23,000 and £30,000 and The cost for flooded businesses averaging between £75,000 and £112,000.
7. Farming and food Due to the damage to the crops food prices where increased causing higher grocery bills that had a knock-on effect on consumer spending in other areas, reducing spend in markets such as luxury goods. Farmers lost loads of there products affecting there income and living.
8. Price Price is the most important determinant of demand. A “demand curve” plots combinations of prices and quantity demanded. A shift in price causes a shift along the demand curve
9. Price (continued) A change in price causes a shift along the demand curve. A shift along the demand curve is referred to as a “shift in the quantity demanded.” A shift in any other variable except price causes a shift in the entire demand curve. A shift in the entire demand curve is referred to as a “shift in demand.”
