Tag Archives: Supply and Demand Assignment

Elaine: Supply and Demand Assignment

Market: Potatos

Source: Potato prices climbing in wake of poor growing season

Potato prices are estimated to rise at least 15%. This is due to a decrease in supply. The supply determinant is number of sellers. Many potato farmers were forced to abandon their crop as it was too muddy to harvest. In PEI, Canada’s largest producer of potatoes, an estimated 2,800 hectares were left in the field as they were too wet and muddy to harvest. After a cold spring and late growing season, this year’s harvest is said to be one of the shortest crop since 1972. As a result, the supply curve shifts to the left, causing the equilibrium quantity of potatoes to decrease and the equilibrium price of potatoes to increase.