Organic eating is the new trend! What is the impact that supply and demand have on
pricing?
The market is a place where the buyers and the sellers interacts with each other and the exchange of the goods and services takes place between the seller and the buyer at a mutually agreed price level. The market demand is the summation of all the individual demand curves and the market supply curve is the summation of all the individual supply curves in the market. The market equilibrium is obtained at the intersection of the market demand curve and the market supply curves and there will be no excess demand or supply at this point. The quantity at this point is known as the equilibrium quantity and the price as equilibrium price.
The organic eating indicates the use of the organic vegetables and fruits in the economy. The term organic indicates that the crops are grown without the use of chemical fertilizers and pesticides etc. The term organic indicates that they are grown with natural fertilizers and are free from chemicals. The use of organic vegetables and fruits helps to improve the immunity as well as health of the individuals. When the organic eating becomes the new trend, most of the consumers would go for the organic vegetables and fruits in the market. As a result, the demand for organic products in the market will increase. Since the agricultural production is not possible to increase the output in the short run as well as the higher cost of organic farming, the supply of the organic products will remain more or less constant.
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