Tag Archives: Raisins

Brandon’s Assignment

Market: Raisins

Source: http://www.visaliatimesdelta.com/story/news/local/2017/02/28/raisin-prices-falling-orange-crops/98541192/

The price of Raisins is falling in the U.S. The prices of the 2016 crop are 31 percent lower than the prices of the 2015 crop. This is due to a decrease in demand and an increase in supply. The demand┬ádeterminant responsible for the decrease in prices is Buyer’s Preferences/Consumer’s Taste. A change in consumer tastes is causing a decrease in the consumption of raisins. This causes the demand curve to shift to the left since, at all possible prices, consumers will want to buy fewer raisins. The supply determinant responsible for the decrease in prices is Number of sellers. Throughout the world, there are more producers of raisins. This increase in the number of sellers/producers causes the amount of raisins to increase and the price of raisins to decrease. This change causes the supply curve to shift to the right. Combined both changes cause the equilibrium price to fall.

supplyanddemandgraph

Advertisements