supply & demand “fungus fears push orange juice up” econ 2105 1/30/2012
TRANSCRIPT
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Supply & Demand
“Fungus Fears Push Orange Juice Up”
Econ 2105
1/30/2012
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“Fungus Fears Push Orange Juice UP”by Alexander Wexler from the Wall Street Journal (Tuesday, January 24, 2012)
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Increase in Demand due to expected future shortage/price increase.
PriceDollars per pound.
QuantityPounds of oranges
S1
D2D
EQ
EP
Orange Juice Market
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Or you could have ….
Decrease in Demand due to consumer preference – not to consume fungus infected orange juice
PriceDollars per pound.
QuantityPounds of oranges
S1
D2D
EQ
EP
Orange Juice Market
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Are likely to also have….Decrease in supply as a result of infected imports.
PriceDollars per pound.
QuantityPounds of oranges
S1
S2
D
In four months oranges rises from $1.50 to $2.19 per pound.“FDA could curtail imports in Brazilian juice test positive and leave the US short of juice.”
EQ
EP
Orange Juice Market