Outline why the change in the market for processing potatoes identified in part (b) islikely to affect the market for frozen fries

Interdependence of Markets: The market for processing potatoes and the market for frozen fries are interdependent because frozen fries are made from processing potatoes. Therefore, any change in the processing potatoes market will directly impact the frozen fries market.

Supply and Demand Shifts: If there is a decrease in the supply of processing potatoes due to factors such as poor harvest or increased costs, this will likely lead to an increase in the price of processing potatoes. Consequently, the cost of producing frozen fries will increase, leading to a decrease in supply or an increase in price in the frozen fries market.

Consumer Preferences: If the change in the processing potatoes market is due to a shift in consumer preferences towards healthier or organic options, this could also affect the demand for frozen fries. If consumers are moving away from processed foods, the demand for frozen fries could decrease.

Substitute Products: If the price of processing potatoes increases significantly, manufacturers of frozen fries might look for substitute products to keep their costs down. This could lead to a decrease in demand for processing potatoes and an increase in demand for the substitute product.

Market Expectations: If the change in the processing potatoes market is expected to be long-term, it could lead to strategic changes in the frozen fries market. Manufacturers might invest in research and development to find cheaper or more efficient ways of producing frozen fries, or they might diversify their product range to reduce their dependence on processing potatoes.