Avocado High Demand

demand for a good is high and the supply is low, the price increases. At some point people’s

Supply and demand lies in the heart and soul of economics. The concept is perhaps the single most driving force in an economy, specifically a capitalist economy. Supply and demand is based on two concepts: The law of demand and the law of supply. The law of demand states that the demand of a product rises as its price falls, therefore the demand of a product falls as its price rises. A good example of this occurs in grocery stores. If the price of a case of Coca-cola drops from $6.99 to $2.99 the demand for the product will rise because more people are willing to pay $2.99 rather than $6.99. Not only will typical consumer of Coca-cola purchase more but consumers who are not normally willing to pay $6.99 will make the purchase. Substitution also plays a role in the equation. Substitution occurs when consumers substitute one good for another based on price levels. In the Coca-cola scenario, some Pepsi drinkers will purchase the Coca-cola given the case of Pepsi is price higher.

55). Products priced below equilibrium price cause a shortage of supply because of an increase in demand for lower priced assets (McConnell, Brue, & Flynn, 2009, p. 55).

It is basic economic principle that states that when there is an oversupply of a good or service, prices fall. When there is a high demand, prices tend to rise.

Supply and demand concepts are all around us. Take for example a shoe factory. From a macroeconomic perspective everybody needs shoes. This type of product is a necessary and not a luxury product. So, there will always be a higher demand of shoes. The company will always try to find the best price to sell the shoes so that the demand increases. The price of shoes is also determined by the production cost of the shoe since it needs to be higher than it. Producing the shoes does not only depend on the company itself but on other macroeconomic indicators. For example, if oil prices increase, the company will need to increase the price of the shoes since it would cost more to pay the suppliers for delivering the materials needed in the production process. Also, as the law of supply says, when supply increases, the price increases. If the supply

2 Causes and Analysis of Rising Cocoa Beans Prices Prices for cocoa mainly respond to supply and demand factors. Ideally, one would think

The price adjusts to rise when the quantity demanded exceeds the quantity supplied and for price to fall when the quantity supplied exceeds the quantity demanded is a central elements to supply and demand. Although individuals tendencies to change prices exist as quantity supplied and quantity demanded differ the changes in price brings the law of supply and demand into play. Whenever the quantity supplied and quantity demanded are unequal, price will stay the same cause no one will have an incentive to change. One thing to remember equilibrium is not the model framework they use to look at the world. Although to establishing the current value of a consumer product Economics has evolved through the centuries there are a few factors that led to a change in

Increased supply without changes to the demand creates a surplus leading to a lower equilibrium price and decreased supply. Without changes to the demand, our cost structure would lead to a higher equilibrium price due to shortage.

To summarize the concept, when the price of a product falls, the quantity demanded of the product will increase, and conversely, when the price of a product increases, the quantity demanded of the product will decrease, where all other relevant factors are constant. (Glen, 2012).

Throughout my time in North America I’ve encountered different kinds of people, yet met none that eat their avocados with salt. Now I would have no problem if they ate it with their food, but they have the nerve to eat it with nothing, or worse, with mustard. Tragically, not many are aware that the best way to enjoy an avocado is with salt. A small amount of the mineral can easily bring out hidden flavours in the fruit. The natural sweetness of the berry embraces the savoriness of the salt, bringing forth a fusion of flavours that will definitely blow your taste buds. When consumed together, the coarse texture of the salt and the smooth, buttery consistency of the avocado are wonderfully harmonious. In short, the best way to enjoy an avocado

When there is a change in the demand of price there becomes a competition. The vendor who is responsible for the good itself must lower their prices to be competitive with the substitution. The substitution must continue to maintain its prices and to never rise above the good or risk being overlooked for the original product. Therefore, the original good continues to lower its prices as does the substitution as well as meeting the supply and demand of the consumer.

The law generally states that the availability of a product and the desire of it will affect the price of the product. The relationship between supply and demand is a complex one. When supply of a good/service is high the prices will decrease, but this can lead to a rise in the demand for the product. When demand is high however, more goods are being sold and the supply starts to get low causing higher prices, the demand will decrease at that higher price and more supply will be needed. Producers and business owners should strive to reach a point of equal supply and demand, also known as equilibrium. When equilibrium is reached, the product is selling at its most efficient, suppliers and distributors are selling as much product as they requested and consumers are getting as many goods as they demanded with a price that both parties are satisfied with. Both supply and demand work together to stabilize the market, create incentives for new types of products and make it even easier to study the economic habits of countries as a

Supply and demand theory helps in shaping the pricing strategy, distribution strategy, and life cycle of the product. Market situations of demand and supply impacts upon the type of strategy, it

Understanding the fundamental concepts of economics allows us to analyze laws that have a direct bearing on the economy. These laws and theories are essentially the backbone of how economics is used and studied. The law of demand can be expressed by stating that as long as all other factors remain constant, as prices rise, the quantity of demand for that product falls. Conversely, as the price falls, the quantity of demand for that product rises (Colander, 2006, p 91). Price is the tool used that controls how much consumers want based on how much they demand. At any given price a certain quantity of a product is demanded by consumers. As the price decreases, the quantity of the products demanded will increase. This indicates that more individuals demand the good or service as the price is lowered. This can be illustrated using the demand curve. The demand curve is a downward sloping line that illustrates the inversely related relationship of price and quantity demanded.

Competition within the industry as well as market supply and demand conditions set the price of products sold.